Best type of Financing for a Multi Unit??

3 Replies

What would you say is the best way to finance a multi unit?

In the past I’ve bought with just 20% down conventional financing. I now have my sights set on a duplex but in order to lock down a conventional loan we need to put down 25%.

It’s priced higher and I really down want to burn all that money on acquiring the house. My intent is to buy and hold.

If you can house hack the best option is FHA even with the penalty of the MPI because you only need to put a 3.5% the cash flow you loose is negligible to the ROI you will be making due to the low money down. Other than that the other thing you could try is buy a bad shape multi unit with a hard money loan but I would not recommend that if you are just starting. Good luck!

@Jose Batista Abikarram

Yea the place is tenant occupied and I have zero interest in living there. House hacking is out. Rehabbing is out.

I just want to buy it and collect immediate cash flow. If there is a way to maneuver the financing so I don’t need to drop 25% and closing costs I’m all ears.

Some banks may accept a 10/10/80 kind of deal. I would talk to a few loan officers to see what products they offer to help reduce the down payment. But I am not sure they exist. Let me know how it goes!