I have owned a three family for almost two years now and am looking to buy a 4 unit plus in Rhode Island and am trying to figure out how to go about getting money for the 20% down payment.

@Gerald Lepore , the first thing that comes to mind is: an Equity Line Of Credit (ELOC), used for its deposit. Over the last two years, haven't you gained circa 20 percent extra equity than you already had at purchase? How's your Debt-To-Income Ratio? Because of its rental return, your DTI should have improved because of your purchase two years ago, right?

The easiest way to get a good/cheap loan is to apply as an owner-occupier.

Any problem with moving into a 4-plex you'd want to buy? 

If your ambitions go to a 12 unit building, now, why stop at 12? Won't you need partner/s?

Welcome to BP. Congrats on your progress so far...

@Gerald Lepore use the equity from your tri-plex plus, you should have saved some of the income from the tri-plex over the last few years. Hopefully, you are not living off of the rental income of your property. If so, you should dial back your budget Sir.

@Gerald Lepore another option to consider, especially with 5+ unit properties, is the possibility of seller financing. You may want to attend tomorrow night's RIREIG meeting as there will be a panel of several people discussing the topic.

With seller financing you may be able to put much less down on the property, depending on the seller's needs of course (which is the most important part of seller financing and arguably all real estate - understanding the seller's needs, and it's not always about money!).

I had saved all the money from my three family rents but when third floor moved out I completely renovated it with new cabinets and I put hydro air system with AC so I used all the cash profits from the rent I had saved to renovate it but now I get $1,200 a month for third floor 3 bed apartment
House produces a 1,000 a month Proffit

@gerald Lepore

Have you considered partnering with someone?  Or take a much smaller equity stake, manage the property for a fee? Or try to raise private money to purchase.  There are many investors in your market on this platform who would be willing to partner and get into a deal.

Look for deals where you can secure owner financing.

Does your 3 family have any equity?  See if you can refi and pull out some equity.

Gino

Originally posted by @Gerald Lepore :

I had saved all the money from my three family rents but when third floor moved out I completely renovated it with new cabinets and I put hydro air system with AC so I used all the cash profits from the rent I had saved to renovate it but now I get $1,200 a month for third floor 3 bed apartment
House produces a 1,000 a month Proffit

 Good for you!!!  What a great example of an investor who makes wise, forward thinking choices!

One of the great advantages you have now is that your cash flow from the multi will count toward your income for qualifying for the new property.  Whatever income your taxes show for profit on the house can be used (plus depreciation is added back in).

My question to you would be.... what is your dti (debt to income) look like?  Could your ratios tolerate a peronal/signature loan payment?  There are many unsecured loan options that might give you enough to cover the 20% down payment for your next project.  Just be sure that the new payment added to your existing debt will be covered by the total income you have.  You don't want to go beyond the dti ratio that allows you to get a loan.

I hope that helps!