Hello guys, It's been a dream for me to start investing in real estate. I currently live in Florida, but the housing market is very expensive in south Florida. I wanted to invest in multi family homes and I have been looking into Ohio market which is more affordable. I wanted to known what is the minimum percentage requirement as down payment on Multiple Families compare to Single family homes. I was looking into Cincinnati areas around 50-90K. Thanks everyone
25% down is the norm. Some people that have relationships with banks can get 20%. Start talking to banks to see what they want.
When you say multifamily, are you referring to 5+ units, or multi-unit residential (2 - 4 units)?
Based on the price range you mention, I assume you're talking about duplexes, specifically. The Fannie Mae guideline in terms of a down payment on a 2 family home in which you do not occupy as a primary residence is 25%. That means any lender offering a conforming note will require 25% down. You may be able to find a portfolio or private lender who will accept less, but you would pay a higher interest rate for that.
Also, that price range is pretty low, especially for a duplex. You're going to limited to some fairly sketchy areas, just so you know what you're getting into.
@Cassandra Alexis Come to our women’s group September 25th Ft Lauderdale listed on bp events page
Originally posted by @Caleb Engler :
Originally posted by @Kris Wong :
Thank you, good info to know, yes I was thinking 2-3 units
Some lenders will allow 20% down payment for a single family non-owner occupied home. For multi-family it is usually 25%.
$50-90K price range for MFH could have been had a couple of years ago, but in today’s market properties in those price ranges are fixer uppers or in rough neighborhoods.
If you are looking for C-B class properties in C-B class neighborhoods expect to pay above $100K in Cincinnati and NKY.
@Cassandra Alexis I did 15% down but my interest rate was about 3 points higher than the going rate and it is only fixed for 5 years. I am going to try to refinance out of it next year.
Also you should check out Columbus, OH. Check out the population and job growth difference between Cincy and Cbus.
Generally speaking, I would expect to pay higher prices in Cbus than Cincy. The higher growth rate isn't "free". =)