First Post, Commercial Financing Question

[Brian Lopes]

Good Afternoon BP'ers

My business partner and I are looking at a 10-Unit, Multifamily Property right now. Having some knowledge of the area, analyzing comps, etc we are estimating a $525-600,000 Appraisal. Fortunately for us, the property is FSBO from a family friend and they are asking $400K. Looking at the numbers and finding LTV between 74-67%. Hypothetically...

Appraises at $550K, 

400000/550000=LTV 72.7%,

$550,000 * 72.7%= $399,850 (Loan Amount)

$399,850 + $150 (Out of Pocket) = $400,000 (BUY HOUSE!)

Is a down payment normally required on the loan in this case since there is so much equity already in the property?

Thanks for any help, and if this is confusing I can provide clarification

-Brian