Updated about 5 years ago on . Most recent reply
How to buy a multifamily unit??
Hi. My name is Michael. I'm new at BP. I found a property with 6 units. They asking for 760k. I only had 50k on cash. So I don't have enough money for the down payment. All 6 units are rented already. So I wonder if someone knows a method or strategy to buy this property. Thanks
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Michael Peiro, Arn offers a good suggestion, and there have been many on these forums that have had great success with seller financing. These people seem to have the best luck when they talk to seller and get a sense of what their goals are. If the seller is sick of managing, but likes the monthly cash flow and not needing the whole sale price now, it could be a great option.
My bigger concern is the ability to secure bank financing on your own. No matter how much you might here that over 4 units, the bank will underwrite the property, which is partially true, they will also underwrite you, especially if you have no real estate experience.
A partner is probably your best bet where the partner will help bring in cash for down payment and assist in securing the loan.