Purchasing of my first rental property.

[Michael Then]

I have finally decided to go on and make my first real estate investment. I have my eyes on this 3 family unit. I do not have the necessary funds for the transaction, do I make an offer to the seller or get the financing option from the bank first? Thank you.

[Jerry Padilla]

@Michael Then

You definately want to get approved before making an offer on the property. 

Is this a primary residence or a investment property?

A primary home you could go FHA on a 3 unit with only 3.5% down, but the property will be required to pass the self-sufficiency rule. For conventional you could get as low as 20% down, if you don't have to count rental income towards qualifying. Fannie Mae requires 25% down and you could count rental income towards qualifying.

If the property is an investment property than you would be required to put down 25%.