What’s my best financing option for this 4-Plex?

Question

I am a first time investor. I am trying to structure an offer on a multifamily rental property in San Bernardino county. I want to create a no money down financing option where I can walk away with cash at closing for rehab and costs. I am uncertain about whether my running numbers is entirely accurate, since I am missing some details for my preliminary offer. What is the ideal kind of financing to pursue for this kind of deal? Also, who should I approach to check my math? Thanks guys! Any suggestions very much appreciated!!

Jaysen Medhurst · Answer

@Jenny L., it's very unlikely that you will structure a deal where you get paid to buy a house. Your best option is probably a FHA 203 loan, which allows you to role in renovation costs and only requires 3-5% down. If you buy right and add value, you can then refi at a later date and maybe pull out some cash.

Run your deal through the BP calculators and post in the forums. The community is always happy to take a look.

Jenny M. · Answer

Thank you @Jaysen Medhurst much appreciated, I will do that! Thanks also @Sean Lambert

Sean Lambert · Answer

No money down and get cash back at closing?!  Let us know how you accomplish that.

Are you planning on living the plex while you fix it up?  If so, you could qualify for loans easier than if you don't.

You could use a mortgage broker to find a loan package that might come close to what you're looking for.

Good luck.