Low downpayment possible?

Question

I am looking into purchasing a larger multiplex (more than 4) and was wondering if a low downpayment is even possible. Same with a commercial property, both Tampa. You hear all these very low money down/zero down stories in podcasts but was wondering if that is even realisitc.

Sarah Brown · Answer

5+ unit complexes are going to be commercial, which means you can't do FHA or a standard conventional loan.  You will need to do a commercial loan. This requires 25% down generally.  If you want less, I would encourage you to look at private financing or owner carry.

Tom S. · Answer

@Allen Berrebbi  Owner carry (seller financing) for 20% of the purchase price, commercial loan for 75%, and you just have to come in with 5% down and closing costs.  I've done quite a few variations of this, it depends on the commercial lender a lot and what they'll allow (still depends on your credit, income, the property, and cash reserves).

But it definitely can be done.  Good luck!

Stephanie P. · Answer

5+ units, you're looking at a minimum of 20% down

Julio Garcia · Answer

FHA! or a 5% down payment loan

downside is the PMI

Lee Judd · Answer

@Allen Berrebbi

I was able to buy a 4 plex with 5% down and a little bigger property with 10% down both with seller financing. In my case the seller wanted to finance them to avoid the capital gains tax hit but we still had to get creative with terms to get him his price. Helped to have a relationship with the seller before hand.

William Owens · Answer

@Allen Berrebbi I am actually in the same boat. Except I’m trying to finance a triplex.

Any help would be appreciated. As for now, I’m just pursuing hard money and “down payment” investors.

Allen Berrebbi · Answer

I'd love to do this but my market is super hot, not sure I can pull this off but would love more details

Allen Berrebbi · Answer

Thta'swhat I was thinking. But you hear these stories :)

Allen Berrebbi · Answer

Can I do FHA if it is more than 4 or commercial?

Low downpayment possible?

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