multi-family investment options for someone with low downpayment

[Maddy Lakshmanan]

I've few single family investments. I'm newbie to multi-family investment.

I can make 20k downpayment, and borrow another 20k from my 401k. Can I invest in a multi-family property (without partnership/syndicate)? 

I'm exploring interest-only loans. Which loan option would the community recommend me for multi-family home?

[Sanat Bhandari]

@Maddy Lakshmanan That depends on the type of multifamily property. With a $40,000 downpayment and assuming your DTI permits, you should be able to get into a smaller multi using a 25% down conventional investment property loan

Some of the permanent financing loan types I recommend for multifamily investing (in no particular order):

- Portfolio loans through local banks/credit unions: They're generally at a 20 year amortization with a 5 year ARM but they can have some of the absolutely best terms out there

- Fannie/Freddie multifamily loans: Depending on the size (>$1m) and DSCR of the deal, these can be a great option with 30-year amortization and some of the best rates out there but they have fairly rigid qualifications

- DSCR loans through a broker: They also have 30-year amortizations but are more lax on qualifications than Fannie/Freddie loans