Creative financing for purchasing a fully rented multifamily building

[Luke Sirois]

I don't have much capital. 

I found a multifamily unit which is fully rented, it is 1.65m for the entire thing and it generates ~20k/m. The NOI is not bad on it and it seems like an outstanding deal.

My thought process as a first time buyer is that I can find someone to pay the downpayment in full in exchange for a high return (like 2x in -10yr) or something similar, and then take out a dncr, run the place. 

My purpose of posting this is to ask; have you ever financed your down payment? Is it viable in a situation like this? Where are you finding people to finance your downpayment?

Is buying a fully rented building a good strategy? I understand that this will come with a learning curve and I plan on doing my due diligence in regards to inspecting the neighborhood, the building (with a 3rd party inspector who knows what they are doing), and the documentation of costs and revenue. 

Where do you guys find your buildings in the world of multifamily apartments?

[Bryce Fairburn]

Here are my gut reaction thoughts 1. There is always a reason someone is selling. It is usually a challenge that they are facing. I would recommend finding out if that challenge is a result of it being fully rented or something else completely. That will change your strategy 2. You can go a couple ways when financing a deal like you are talking about: getting someone to provide private money for the downpayment, or getting the seller to do a 2nd position seller financing. 3. 1.65m - 240k/year gross? Lots of variables but you will probibly be in the 120-180k/year operating costs. I would recommend being very confident on those numbers. 4. You didn’t mention how many units. Financing changes at 5 units and at 10+ units