My wife and bought a Single family 6 months ago and we would like to purchase a multi unit. What advice can anyone give or options I have in order to purchase the multi unit? 

@Edson Jean What market are you purchasing in? I have tons of info about the Detroit market if that applies to you.

If you buy a four plex or smaller the banks will treat it just like a second home. Generally 25% down on a 30 year fixed and rates are currently around 4.5% for a second home.

@Todd Douglas  I’m in Massachusetts looking for residential

@Michael Jones thanks 

Hi Edson,

With having just purchased your primary residence (single family) you would be looking at purchasing the multi-unit as an "investment property." Most lenders will require a good explanation if you were to apply for a new primary residence loan within 12 months of purchasing another primary residence. It would also be questioned why you would be moving from a single family to a multi-family property as your primary residence as it is perceived to be a less desirable living situation.

By purchasing the property as an investment property you are looking at a minimum of 25% down for a multi-family, and unfortunately the rates are slightly higher than a primary residence purchase. You can use 75% of the projected rents to help you qualify, but typically the hurdle for most first time investors is the down payment requirements for an investment property.

Please let me know if this makes sense or if you have additional questions. I am a loan originator for a large bank in Boston and can help you with a pre-approval if you are interested.

@Mike Cartier Thanks I will definitely keep that in mind and contact you if If I have additional question.

@Edson Jean @Mike Cartier pretty much nailed it.

I would talk to him and if pre-approval turns into a problem, a secondary strategy would be to approach a good LOCAL bank, like a Rockland Trust, Eastern Bank, Webster Bank or a credit union to see about a portfolio loan.

Portfolio loans are not sold on the secondary market and are not subject to the same rules and restrictions as those that are.

Where are you looking for a MFR?

@Charlie MacPherson thanks for the advice I will definitely look into that.

I'm looking for MFR in areas like Boston preferably or 15 to 20 miles north or south

@Edson Jean  I assume you're looking at 1-4 plex residential, correct?  Do you have a maximum spend in mind?

@Edson Jean

It looks like you are looking for a 2-4 unit. Here's what I would reccomend 

1. Define how you will finance 

2. Define your target areas 

3. Self Manage or Property Manage

4. Analyze deals 

5. Make Offers 

@Charlie MacPherson - local banks are great to look into! 

@Charlie MacPherson yes I would like to have a 2 to 4 but my only problem right now is because my current single is in my name and my wife’s name I just don’t think we can get approved for $500k or $600k for multi

@Steve Bracero can you be a little more specific please.

@Steve Bracero sorry about that I got it thanks for the info.

@Edson Jean Have you talked with a lender yet?  A good, solid pre-approval will make all the difference.

At least you'll know where you stand.