Mult-Family opportunity financing in Phoenix

[Ali Khan]

Hi folks, I have a potential lead on a four unit in Phoenix for around $800,000. I know the seller very well and she has all four units occupied at about $1500/$1600 per month each.

I've never invested before but just wondering what my finance options are with say $50-70K down.

Many thanks!

[Josh Young]

@Ali Khan that could be a great opportunity for you, if the units are currently rented for that much it's likely worth more than $800k, maybe as much as $900k depending on location and condition/deferred maintenance. If you could get her to not renew one of the leases, so you could owner occupy and get a FHA loan you could house hack with only 3.5% down, that's where I would start. Or if she owns it free and clear you could buy it from her with seller finance terms, or if she does have a mortgage on it you could still do seller finance terms and "wrap" the existing loan. In either of these examples you could then refinance after a year or two. You just don't have enough capital to take it down with traditional financing as an investment property, at least I don't know of any lenders that do anything close to 8% down which is what you are wanting to do.