Multifamily investment with 20% down or less

22 Replies

Hi everyone,

My name is Neha and I am planning to purchase a triplex in Massachusetts as an investment property. It is a gut renovation and everything is brand new. I also own another triplex for more than a year now. The triplex is selling for 330k and makes a monthly rental income of $3,700. I want to buy it with a down payment as low as possible. Can anyone tell me what my options are? Is it possible to get a loan with 20% down? 

Thanks,

Neha

@Neha S.   $330K for a renovated 3-plex?  That sounds VERY low in price, unless it's west of Springfield, or possibly south coast.  

Are you comfortable with the area crime wise?  Are the rents able to support that deal?

@Neha S.   I've reached out to my lending contacts who have all told me that 25% is required for non-owner-occupied.  

One thing to try is to find a local bank with a presence in the community where the property is located and ask about a portfolio loan.  Those MIGHT have looser standards.

I'm sure you know this already, but you can do a much smaller down payment if you purchase it as your primary residence and move into one of the units. You'll be required to live there for at least 12 months, after which you are free to move out and keep it as a full rental.

@James Marshall Thanks for the suggestion. We live in a property that we own and the one I am looking to invest, is not a great place to live. It is just for an investment purpose.

Originally posted by @Neha S. :

@Matt Katsaris This is something I could give it a try. Thanks for the suggestion. 

 If you are getting a good deal money might not be the motivation for the sale. Demonstrate to the seller the "value" in doing owner finance... whatever that may be to them to increase the odds.

@Neha S. I just talked to another lender who can do 20% down.  It's Lisa Larkin at Shamrock Financial.  I'll PM her contact info.

Just for full disclosure, they are not paying me for the referral.  

I have only done BRRRR investing so far but my financial advisor sent me some contact info on a lender he uses that only requires 15%. I'll have to go through some old emails and get it for you.