Water Mill New York DSCR Rental Loan
Asset Based Lending recently funded a DSCR rental loan for a first-time borrower to cash out and refinance a single family home in Water Mill New York. The borrower was looking to sell this property prior to contacting ABL but due to unfavorable market conditions was unable to make a sale. ABL stepped in to help this borrower refinance so they could place renters in the home until the market is stronger. This 6,000 square foot home was purchased for $1,250,000 and appraised for $5,500,000 with the expectation to collect $20,000 in monthly rent once renters are in place. Though the DSCR is 0.80 and doesn’t qualify as a strong income producing property, ABL was able to work with the borrower to make this an interest only loan and a profitable deal for all parties. Water Mill New York is located on Long Island in the prestigious Hamptons area. With the possibility for short-term rentals in a high value area this home has the potential to collect top of the market rent prices for the peak summer season.