Multi-family Investing Raleigh Nc

11 Replies

I am looking at starting my first deal and wanted to know what are the options investor financing? I currently do not own a home since I just moved to the Raleigh area. I am looking for the multi-family investment options but most important before moving forward, financing is important to see what options I have and down payment percentages.

Does it make a difference if the properties already have tenants?

Thanks for any advice!

John Wingate

Hi John,

Welcome to BP! I'm not a mortgage guy but just in general if the property has below a stabilized occupancy of 85% most lenders will not provide financing which means you would probably need a hard money loan with higher rates than conventional loans. There are a multitude of HML's and formats so maybe a mortgage lender will weigh in here and help you out. Since you do not own a home you may look at buying a two to four unit and living in one of the apartments. This way you could qualify for a homeowner financing program which I'm sure has some very good rates at this time. Hope this helped a little.

Best Wishes,

Gary

Originally posted by Account Closed:

I am looking at starting my first deal and wanted to know what are the options investor financing? I currently do not own a home since I just moved to the Raleigh area. I am looking for the multi-family investment options but most important before moving forward, financing is important to see what options I have and down payment percentages.

Does it make a difference if the properties already have tenants?

Thanks for any advice!

John Wingate

I suggest you start by talking to a mortgage broker (Amy Bonis is a good local one - I think she is a member here too) to get an overview of the more traditional financing options. FHA type loans, you will typically look at 25-30% down for multifamily properties (2-4-plexes, that is - lareger than that you are looking at commercial loans). Haven;t checked rates recently, but I'd think you could still get below 5% for 30year note with really good credit.

Account Closed reach out to a lender and talk about criteria and what is needed from your end. That's a great place to start learning the financing world.

Account Closed Definitely talk to a lender first to get financing squared away.  That's the most important piece of the puzzle.  Just so you know, the Raleigh area doesn't have a ton of good multifamily properties. It seems to not have been a popular building style around here, and much of what you will find is either very old, in not so great areas or both.  That being said, there are some available if you are patient.  

Thank you everyone! I believe I may try to buy a multi-family and be an owner occupant for a year or two. This sounds like a good idea and may be my best option at the time. 

Hey, Form experience it is relatively difficult to find a Multi-family in the Raleigh area. The ones that seem to be around are far to expensive and rents are far to low to cash flow. I had an alert on a local realtor for notifications and after 8 months I had three hits all of which were 250k+ with rents at 700-800. Just didn't seem worth it. Haha.

This post has been removed.

Originally posted by @Nalo Coban :

Account Closed I have a great multi- family 4-plex recently renovated that would cashflow you at least $1200/mo! It's priced to sell and priced for an investor to receive a generous cashflow. Each unit will rent for $600/mo. That $2400/mo minus your expenses, which are really low...you will get half if not more of the monthly rent in your pocket. The property is located in Statesville, NC.

PM me and I will send you the listing info.

 No thank you! Statesville is almost 2 hours from Raleigh. :/ 

@Colton S. That's what a property management company is for.

@Colton S. you are right about it being hard to find a good duplex to live in here in Raleigh. I looked for months and months and never had a single duplex I would be happy to live in hit the market at a price where the numbers came close to working.

Even second hand I've only heard about 2 or 3 people buying one I wish I would have found (one of them posted in this thread)

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