Happy Tuesday everybody,
I am actively searching for multifamily rental properties with the long term buy and hold strategy in mind. It is my first deal, so I am looking for a place that won't require a great deal of work up front but still offers some room for cosmetic enhancements to increase value. Since it is my first deal and I will not be living in the property, I have had a hard time finding financing requiring less than 25% down. I am curious to learn how partnering up might make financing a little easier. What exactly does the lending process look like with a partner? Any information is extremely appreciated.
Additional background: I am looking for properties in the suburbs of Chicago or any (excluding bad crime) areas within the city. I recently graduated this past year, work a full time job, and have been able to save up nearly 35k so far.
@Aaron Bruck - If you are not going to live there then 20%-25% down is the best you can get.
Low money down programs are only if you owner occupy
If you have a partner you will likely be using a LLC - which would be a commercial loan and still 20% - 25% down
@Brie Schmidt Thank you for the quick reply!
Whether a partner makes the financing easier or more difficult to obtain really depends on their income, debts, credit scores, and real estate owned, but assuming all that is in check then hopefully it would be easier if they are bringing the additional down payment. As Brie mentioned, low down payment solutions (3.5%-5.0%) are reserved for primary residence/owner-occupied scenarios. Not sure if this answers your questions, but just let me know if you have others!
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