“Buying Multifamily Properties”

By
Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“Buying Multifamily Properties”

 

 

 

 

Hi Joe!

Hope all is well! I have a question about possibly making a large real estate purchase. I am incredibly frustrated with my job, which I’m attributing to a blessing in disguise, because it’s pushing me to get the lead out and focus on real estate more! I’ve gotten 3 out of 4 properties on the MLS, but I haven’t seen anything that has caught my eye in a while, so I started looking around at multi-families and came across an apartment building. It’s a total of 6 units and going for 675,000. This would definitely be a huge step up from the things I have done this far, but I’m never going to get where I want to be if I don’t do something I’ve never done before. So....my question is, what are my options for buying a property this large? Would I still need the 25% down? Would it be considered a different type of loan, could I use the equity on my other properties towards it? I’m not sure how I can make this work. I also don’t really know how to value this. Houses I’ve become fairly good at, but not anything like this. The only thing I have to compare it to is my multi in Manchester....not sure that would be a fair comparison though. Please let me know what you think when you have a minute! Thanks Joe!

Amanda

 

 

Right now, we have investor loans available for 1 to 4 family properties with 20% down. Someone with half way decent credit will need no reserves if the rent covers the mortgage payment.

 

Properties that are 5 units and above have totally different requirements and are more difficult to obtain.

 

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

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Location:
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Groups:
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Connecticut Professionals
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multifamily home

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Rainmaker
1,406,292
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Amanda's got the right attitude about life - you have to change things if they aren't going the way you want.

Good info about loans for multi-family homes.

Apr 08, 2019 03:26 AM #1
Rainmaker
3,173,497
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Joe. Many years ago was involved in the development and sale of approximately 300 6-unit apartment buildings. Construction loans were relativley easy but financing for individual end users was not so easy. Experience dictates the best source for these types of investors is a mortgage broker. Enjoy your day!

Apr 08, 2019 04:37 AM #2
Rainmaker
3,527,588
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Joe. In New Jersey where I was an investor, it was very difficult for multi's above 4 units.

Apr 08, 2019 05:58 AM #3
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1,614,454
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

My builders limit their units to 4 so we can qualify with Fannie. I agree that the financing on more is nowhere near as good.

Apr 08, 2019 09:02 AM #4
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