First Deal - 4 plex vs 5+plex - Financing Qs

[Tim Hemmersmeier]

Hi,

As I am thinking about pursuing my first deal, I have a few questions on some pros/cons of starting with a residential (1-4 units) vs a multifamily (5+ unit) property, specifically in regards to financing. 

I am aware of some of the differences with regards to LTVs, length of financing, etc, my question is do lenders truly own look at the property for multifamily & LTVs & debt coverage ratios & not the borrowers ability to qualify? Does the bank pull personal credit & will that loan affect your DTI when you try to get future mortgages? I would like to use the BRRRR strategy to build a single family portfolio, but am concerned about the ability to continue to qualify for additional mortgages. Obviously terms & conditions will vary greatly from lender to lender but I am looking forward to hearing everyone's thoughts & any other pros/cons for doing a commercial property for a first deal vs a residential!

Thanks,
Tim