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Manhattan Beach rental properties command premium prices but generate strong rental income from beach-proximity demand. Most investors here use DSCR loans because they qualify on property cashflow, not personal tax returns.
You're competing with all-cash buyers in this market. Speed matters. Non-QM investor loans close in 15-20 days when you work with a broker who underwrites before you make an offer.
The South Bay rental market stays tight year-round. Long-term rentals to tech workers and short-term vacation rentals both pencil out, but your loan structure depends which strategy you choose.
Most Manhattan Beach investor loans require 20-25% down and 660+ credit. DSCR lenders want rent covering 1.0-1.25x the monthly payment—no tax returns or paystubs needed.
You can close with an LLC or personal name. Foreign nationals qualify with 30-40% down. Lenders run rent comps before approval, so inflated appraisal rents won't fly.
Fix-and-flip buyers use hard money with 12-month terms. These loans go up to 85% of purchase price plus 100% of rehab costs, funded in draws as work completes.
About 40 lenders in our network write Manhattan Beach investor loans. Rate spreads run 2-3% between best and worst pricing on identical scenarios.
Some lenders cap at $2M, others go to $4M. A few will finance properties under $1M but charge extra for small balance risk. Your loan amount determines which lenders compete.
Local banks rarely touch non-owner occupied coastal properties. They want relationship banking, not one-off investment deals. Non-QM wholesale lenders price better and close faster.
I lock most Manhattan Beach investor deals at 1.25 DSCR minimum. Running a 1.0 gets you approved but limits lender options and costs 0.5% in rate.
Order the appraisal with rent comps upfront. I've seen deals die because investors assumed $7,000 rent on a property appraiser comped at $5,500. Verify numbers before you're in contract.
Interest-only payment options drop your DSCR requirement. A property that doesn't cashflow with P&I might hit 1.25 DSCR on interest-only terms. You pay more over time but you get approved.
DSCR loans beat conventional investor loans for high earners with complex tax returns. You skip the income documentation circus and qualify on property performance instead.
Hard money works for fix-and-flip but costs 9-12% rates. Only use it for 6-12 month holds. Refinance to DSCR once the property is renovated and rented.
Bridge loans fill gaps when you need to close fast and refinance in 90 days. They cost more than DSCR but less than hard money—useful when timing matters more than rate.
Manhattan Beach restricts short-term rentals in most residential zones. Verify zoning before banking on Airbnb income. Long-term rentals work everywhere but generate lower yields.
Properties near the Strand or within walking distance to downtown rent for 30-40% premiums. Lenders use those comps for appraisals, which means better loan terms on premium locations.
HOA fees in beach-close buildings run $400-$800 monthly. DSCR calculations include HOA in your debt service. High HOA fees kill deals that look good on purchase price alone.
Yes. Lenders use appraiser's market rent opinion, not current lease. The appraisal includes comparable rents from similar Manhattan Beach properties.
Most lenders want 6-12 months PITIA in reserves per property. High-net-worth borrowers sometimes waive this with larger down payments or portfolio relationships.
Investor rates run 0.5-1.5% higher than owner-occupied. DSCR loans add another 0.5-1.0% versus conventional investor loans because they're non-QM products.
Yes. Portfolio lenders finance 2-10 properties in one loan. Pricing improves at higher volumes but you need consistent DSCR across the portfolio.
You sign an investment property affidavit at closing. Occupancy fraud carries federal penalties. Lenders cross-check your primary residence address and may audit later.
Investor Loans in Manhattan Beach