Financing 3+ Multiplex

[Elizabeth Bower]

What are the best ways to secure financing for a 3+ multi-family property? I'd like to open an LLC and invest under the LLC I think. Are there better ways? How does a normal W-2 9-5er job secure financing through an LLC that has no income? What types of loans, lenders and down payment are we looking at? Can we use the current owners rent roll to help secure financing? Best way to find properties?

[Devin Peterson]

Quote from @Elizabeth Bower:

What are the best ways to secure financing for a 3+ multi-family property? I'd like to open an LLC and invest under the LLC I think. Are there better ways? How does a normal W-2 9-5er job secure financing through an LLC that has no income? What types of loans, lenders and down payment are we looking at? Can we use the current owners rent roll to help secure financing? Best way to find properties?

 Elizabeth, 

The best way to finance a 1–4 family investment property without traditional W-2 income is through a DSCR (Debt Service Coverage Ratio) loan. Instead of verifying your personal income or employment, the lender looks at the property's rental income compared to its mortgage payment — if the rent covers the debt, you qualify. These loans are ideal for real estate investors, self-employed borrowers, or those with complex income situations. For example, if your property rents for $2,000/month and the total mortgage payment is $1,600, your DSCR is 1.25 — meaning it earns 25% more than it costs, which most lenders consider a pass. This type of loan allows you to build a portfolio based on cash-flowing assets rather than personal income. You can choose to close in the LLC or personal name. Hope that helps, good luck!