Mortgage Financing for a Multi-Family - based on equity or income?

25 Replies

This is a really great dialogue, I'm interested in acquiring my first commercial residential apartment building as well so I appreciate the feedback here.  Does anyone know any contacts that have experience in NJ?

Also, my prior experience is 6 years owning and managing a 2-family.  Will banks/lenders view this as not sufficient enough?  If yes, is it better to acquire a 4-unit first (still considered residential) and then build up to a 5+ unit property?

For a smaller  MF  for us they looked at the property and our income for a personal guarantee.  If either didn't make it they would not have written the loan.  This was a local RI bank and they required 20% down.     I am not sure how much the number of previous mortgages we had factored in but income did.     It was a commercial loan so the terms and process were different.

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