I'm currently looking at an 8 unit apartment complex. This will be my first multifam deal and I'm trying to work out a low up front cost to finance the property. The units have great cash flow for one person, but if i bring on an investor then the deal really isn't worth it. These are 2 seperate, 4 unit buildings,on the same property totalling 8 units. I can try to stay around 10% down and finance both buildings as one property via investment/commercial style loans or I can subdivide the property into 2 seperate parcells, take an FHA on one building and live in a unit, and try some other low down payment loan on the other building. Any advice, recommendations and similar experiences would be greatly appreciated. I'm working on forming an entity as well for commercial use. Thanks!
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
4y
@Daniel Simpson what you are describing would be pretty impossible. No commercial loan is going to work with a 10% downpayment and you would need to have the property replatted BEFORE you could even close on the property with FHA - meaning, the current owner has to pay for all of that. And then the FHA loan allows you to purchase 1 of the buildings....so you would still need a solution on the other building. I just don't see any solution here to this type of a property based on what you are describing.
@Daniel Simpson what you are describing would be pretty impossible. No commercial loan is going to work with a 10% downpayment and you would need to have the property replatted BEFORE you could even close on the property with FHA - meaning, the current owner has to pay for all of that. And then the FHA loan allows you to purchase 1 of the buildings....so you would still need a solution on the other building. I just don't see any solution here to this type of a property based on what you are describing.
I'm afraid you're 100% correct. I've got a lender who can do 15% down for the full 8 units and I think that will be the most financially feasible. My pitches to my investors will be ROI for invested cash and 5-10yr equitable share matching % invested or until paid.