Multi family financing

[Anthony Dee]

Looking for advice! I'm planning on purchasing my first small multi family property this summer. I have my eye on a duplex in Tucson, AZ that's historic and a little high end. I'm looking at about $110k (or so) to handle down payment, closing, repairs etc. That's a bit more cash than I'm able to come up with all at once. So, I'm trying to be creative and ask "how can I afford this?" I can comfortably come up with half of the cash needed to get this thing going so I'd like to borrow the other half (about $55k). I'm thinking about a home equity loan or using private money from a friend/colleague to make up the other half of the cash. This is really not a rehab job, it's a buy and hold. Paying down that other $55k down is probably going to tank my cash flow until I can pay it off. Could be 1-2 years. So, my questions: 1. Does that seem to risky? To use up my cash flow while I pay back the down payment loan for the first couple years? 2. If I can do it private, should I? I feel like it's easier and the terms are more negotiable. 3. But is it actually easier?? I've never done a private loan before and nor has my friend/colleague. (We will for sure hire an attorney). How/where can I research specific structure for a deal like that. I want to make sure everyone is happy and getting a good deal. Thanks for any advice or resources you might have! Anthony Dee

[Dennis M.]

Geez Don’t go through a realtor . Offer seller financing directly to the owner with 20% down and fair payments with 4-6% interest . You can call the city and they will tell you everything you need to know without using a realtor for anything