Putting an offer on a multifamily...help
Hello BP, after months of diligent and persistent search, I've finally found a deal to put an offer on. It's a 3-unit multi, two of which are currently tenant-occupied. Based on the rental market in the area, the third should be very easy to rent. I want to make sure I have all my ducks in a row. Even with a lot of due diligence and a highly experienced realtor, surely I am missing something. I would appreciate any advice, pointers, key questions to ask, as I take the next step. Many thanks!
Most Popular Reply
Hi @Chrissy L., no, I won't be paying PMI with 10% down. I talked to multiple banks, portfolio lenders, and mortgage brokers before deciding to go with one of them.
So you can compare, I'm buying two adjacent multifamily buildings for 13 units total (6 and 7 units each) and I'm seeking financing for my LLC (@Lakshay G.). These are the top financing options I ended up with (all with 20% or less down):
Option 1: 10% down, 5% interest rate 30 year fixed (no call or ballon payment), 1 point
Option 2: 10: down, 6% rate 30 year with 5 year ballon, 1 point. Also, they offered a construction loan up to 90% of ARV @6% also 30 year amortization, 5 year ballon.
Option 3: 20% down, 4.625% rate, 20 year amort, 5 year call
Ask your agent, ask people in the locale REIA meetings, ask your title company, ask your attorney, your CPA, etc. Ask them about lenders that they recommend. Call all of them, explain them your deal and what you want. You'll be surprised how many different terms you get.