“Buying Multifamily Properties”
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!
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.