First deal help (financing options)

[Spencer Rossie]

Hello BP, I'm looking for some advice on the best approach to getting this property. 

Breakdown of the numbers- 

5plex 3 2bd/1ba 2 1bd/1ba (Completely renovated and turn key with appliances and w/d)

Asking $365K (I'm pretty confident I can get it for $350K, off MLS property)

Numbers based on $350K

Taxes $2700 annually (or $2200 owner occupied) 

Insurance ~$300 month 

Rent $875 2bd/2ba $675 1bd/1ba

Total $3975

(these are very conservative numbers..could be as high as $950/$750 $4350 total)

Monthly Cash Flow $1500 

(assuming zero money down and 5% for 30 years and before budgeting any expenses) 

Currently the only finance option I have been looking to use is my home equity loan, however that is only $100,000. So my question is in order to lock up this property what are my other options? I have considered going the FHA route, but the mortgage insurance and other fee's have me concerned. I may have bitten off more than I can chew, but what are my options. I am not apposed to moving into one of the units.

I'm new here and new to REI so if I have left out any numbers or completely over looked something please let me know. I look forward to learning more and hopefully getting my first deal under my belt. Thanks!!

[James Wise]

It's over 4 units so it's going to fall under commercial financing.

The bank is going to put more weight on the properties ability to produce income then your own personal income. So huge benefit if the seller operated the building well and kept good records. Major problem if he did not.

What you will want to give your lender is the last 3 years of the sellers sched. E.

Typically the bank will be looking for at least 25% down.