Buying Apt Building and making one unit primary residence

[Munish Suri]

Could anyone please speak to the financing considerations of purchasing a multi-unit which one unit would be taken as a primary residence of the buyer.  We are considering taking this approach to properties in the Seattle area.  Specifically, are the lending criteria the same as a primary mortgage (ie. minimal downpayments) or is the property considered commercial and we require 20-25% down?  

[Michael Haas]

As long as the property is 1-4 units the lending requirement can be the same/similar to a Single Family primary mortgage, but 5+ units would have to be a commercial or investment loan (typically 20-25%+ down and different terms). 

Are you thinking of buying a small multi-unit property and “house hacking” it for the additional income @Munish Suri? That’s how we started investing, a great strategy for high cost areas like here in Seattle!