What is the best way to buy a multi-family unit?

7 Replies

I would like to buy a multi-family unit, preferably 4 or more units. I am a veteran so I have the option to use my VA loan but I’m trying to find the best way to purchase this property. Thank you guys in advance for your time and knowledge.

You can partner with a lender, partner with other investors, or create a syndication group if it's a larger property. A VA loan is a great way to buy as well because of the low down payment if the property still cash flows!

I'd leverage the VA loan and house-hack a 4-unit to get started. Then, you can continue house-hacking until you have enough capital saved up to acquire an investment property, or follow on of Ty's strategies.

I wish I had used my VA loan to first acquire a 4 unit. This would be a good option because you can live in a unit for a year then move on to your next, but if you stay at least 2 years you can use the rents from the other units to count as additional income making it easier for you to get into another property. You can't beat the interest rates and the minimal down payments.

You can use your VA if you will live there, if not your SOL. The independent mortgage brokers with multiple sources while running their own shop are harder and harder to find but that is exactly what you need. Often times, borrower gravitate to the larger lenders not know the bigger they are, the more rigid they are about putting all their customers in to a very limited types of boxes. That might be what your running in to

@Demario Sanford I second (forth?) the VA loan. I only add that you should buy as many units as fit your investment appetite. Don't force a 4 unit if you'd be overpaying or moving into a neighborhood you wouldn't want to live in, etc. You may find that a 2 or 3 unit will be the better investment, at least for the time being. Don't forget that this will be your home for a little while.

But if the 4 unit works out, more power to ya!