Average rates for commercial loan for 12 unit complex

[David Stone]

I am looking at purchasing a 12 unit apartment complex for about 250k. 10/12 units are occupied and the units rent for like $450/month. Was curious what the average interest rate would be for this sort of deal. And what sort of down Payment is normally required?

[Karen Schimpf]

@David Stone On this purchase amount, commercial rates vary from 5.25% to 12%. The loan to value will most likely be 75% loan to value. The terms will most likely be 3 year fixed or a 5 year fixed, amortized over a 20 year at your local bank. If your property is located in the same area that you live,  I recommend you go to your local bank or local credit union.  The local bank/credit union will not only debt service the mortgage on the apartment but also do a global debt service on your personal income and personal debt.  If you need the property to debt service without your income (and personal debt) or need a 30 year amortization, I recommend calling a Commercial Mortgage Broker to help you get a loan.  Provide the Local Bank, Credit Union and Commercial Mortgage Broker your credit report and credit score for the pre-approval process so your credit score does not go down.  

Good Luck.