Rental Property Investor · Berkeley, CA · Member since 2018 · 30 posts · 18 votes
Hey BP and happy holidays,
So I am really excited to buy my first investment property and I am currently trying to get pre-approved for a mortgage, so far I've been only in contact with quicken loans (rocket mortgage), they say I need to have 25% down (multifamily) plus about $10k for closing costs (quote: fees charged by fannie mae that can be another 3-4000).
What are my other options? any recommendations? banks or brokers? I am in CA looking to invest in OH. Would be nice to find a bank with 20% down for multifamily investment property.
Mikhail - I think 25% is the norm for a deposit in MF unless you can find a seller to do some creative finance. Even on the SF space you are at some point required to put down 25% also
Mikhail - I think 25% is the norm for a deposit in MF unless you can find a seller to do some creative finance. Even on the SF space you are at some point required to put down 25% also
@Mikhail Katz 25% will be required for 2-4 units. I would recommend another quote from a bank local to the area you are looking to invest. $10,000 in closing fees sounds a little excessive
@Mikhail Katz I'm not sure of the dollar amount of the property you were looking for but if it's a high dollar property $10k might be reasonable. But for the most part what investors try to do is find a property in disrepair to buy, rehab, then refinance (the BRRR strategy) and that's how we limit our out of pocket expenses. So if you purchased with a Hard Money loan, then refinanced, in theory, that would decrease your out of pocket costs. Try doing some research on that strategy to see if that is better suited for your scenario.