80/15/5 Piggyback loan ?

[Jason Ortiz]

Has anyone use a 2nd loan to cover the difference in Down payment ? I’m looking purchasing my first multi family unit home. I’m looking into a 4 unit multi family home in the contra costa area and planning to live in one of the units and rent out the other 3. My lender informed me I’m approved for 1.5 mil and they’ll lend me 1.2mil. For my down payment amount I have around 55k and the lender said they can take out a 2nd loan to cover the difference in down payment.  This would be my first property  ever so I was hoping could anyone advise on the pros and cons of doing this type of loan. I want to renovate the units throughout the year and hoping to refinance after a year and looking to get one loan for the property . Any advise would he greatly appreciated 

[Mike Dymski]

This sounds like 2008.  I recommend having a cash reserve to cover unexpected vacancy or repairs; otherwise, you are one sneeze away from pneumonia.