Buying Two Fourplexes - Financing Options

[Paul I.]

Hello everybody,

I am looking at buying two fourplexes right down the street from one another.

Will the bank look at this deal as a standard residential mortgage or will they view it as a commercial/multi family deal looking at NOI?

Also, in a situation like this how will the appraisals work? Are they off of comps or NOI/Cap Rates?

Thanks for the advise and guidance.

[Jerry Padilla]

@Paul I.

You can purchase these with conventional residential financing. They would be 2 separate purchases with their own mortgages. You would get pre-approved to purchase both properties. An investor friendly lender can help clients purchase multiple deals at one time. They will look at recently sold comparable properties in the area.