Houses outside my price range

[Mark Howland]

I'm looking at a large (19 unit) multifamily property for college housing to buy and hold that is 750k and I love the idea of getting creative with financing but as I was thinking about hard money I realized that with my salary I would only qualify for a loan up to 500k. (I recently bought a home and my pre-approval was only that high) So I realize even if I do get hard money up front, I wouldn't be able to refinance after a year because of that. Or am I mistaken? Is there a work around for this?

I have 2 SFH's that are renting right now and my current house I'm house hacking a duplex but this is my first step into multifamily so I'm grateful for other's experience and advice!

Thanks!

[Ashley Cross]

Hi Mark!

With it being 19 units, you'll need to get commercial financing which doesn't focus on your income. The cashflow of the property will be scrutinized. The rates and terms are less favorable for commercial deals unless you have a relationship with a lender so be prepared for that. Best of luck to you!