Two Loans VS One Loan on two 4-plex

2 Replies

Greetings,

Looking for peoples opinions. I currently have 2 4-plex under contract. They are two completely different properties with different address in different parts of town owned by the same owner. My banker has said we can put both properties under one loan but I’m starting to wonder if that’s a good idea. 

What are your thoughts? Is one loan better than two for two different properties? 

Also banker is treating them like a commercial property and doing a 20 year loan instead of 30 with 4% interest and 1% origination. 

HI Tariq,  Any financing with 5 or more units is considered commercial and with that, your financing options are not as good as residential financing.  I personally would go with residential financing and go with one loan per property. Not only should you come out with better financing ( rate, costs and terms ) you will be in a better position should you ever be in a bind and need to liquidate.  If hard times hit, you could sell one and keep one vs having to sell both.  good luck.