Finance explains how landlords borrow: conventional and debt-service-coverage loans, bridging facilities, portfolio lending, refinancing timing and the ratios lenders test before approval. Articles show the payment math and the point at which a rate change breaks a deal. For borrowers preparing applications or restructuring existing debt.
At 7 percent investor financing, the same property that cash-flowed at 4 percent needs either a 45 percent larger down payment or 18 percent higher rent to produce the same monthly result.
Karim Al-Rashid
The gap was 200 basis points on the most recent published figures. A Boston Fed paper attributes most of it to the borrower's free right to refinance.
Karim Al-Rashid