Quadplex (1 roof) set up with 4 front doors, 12 bedrooms total- accepted offer of 270k.
We plan to convert to 12 rooms of student housing. Currently 3 of the 4 units are rented by families but we plan to let those expire and then rent out individual rooms within the units.
Here are my financing options, please let me know if these are competitive. This is a local bank. I'm happy with the service so would like to use them if they are similar to what I'll get elsewhere.
I couldn't qualify for conventional mortgage on this due to the 12 room set up. Or so I was told.
Loan 216,000 (20% down)
15 year term
0.25% origination fee of loan value
4.5% fixed 5 years then reset to WSJ prime + 0.5 every 5 years.
I've asked for a period of 6-12 months interest only and for a 20 year term and are working on it. He said 20 yr will be around 5%
Bump- any insight?
Any recent multi family financing experiences?
Are you sure they are benchmarking against WSJ prime and not federal home loan rates? Should be against your local FHL + roughly 2-2.5% for a run of the mill deal. I'm closing this week sub FHL bank Boston +1.8%
But otherwise the financing seems middle of the road. 15 year term seems very short, I'd try for 20% down over 25 years and shoot for under 4% interest
5% on a 5/20 is typically what I'm getting.
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