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Investing in Low cost Multi Family homes?

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  • Posts 3
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Cassandra Alexis

posted over 1 year ago

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

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  • Posts 7
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Caleb Engler
from Richland, WA

replied over 1 year ago

25% down is the norm.  Some people that have relationships with banks can get 20%. Start talking to banks to see what they want.



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Check Rosette Top Subject:
Finding & Screening Tenants
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Kris Wong
Rental Property Investor from Austin, TX

replied over 1 year ago

When you say multifamily, are you referring to 5+ units, or multi-unit residential (2 - 4 units)?

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Check Rosette Top Subject:
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  • Posts 356
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Kris Wong
Rental Property Investor from Austin, TX

replied over 1 year ago

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.

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  • Posts 478
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Rita Medeiros
Rental Property Investor from Pompano beach, Fl

replied over 1 year ago

@Cassandra Alexis Come to our women’s group September 25th Ft Lauderdale listed on bp events page 

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  • Posts 3
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Cassandra Alexis

replied over 1 year ago
Originally posted by @Caleb Engler :

Thank you

 

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Cassandra Alexis

replied over 1 year ago
Originally posted by @Kris Wong :

Thank you, good info to know, yes I was thinking 2-3 units

 

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  • Posts 166
  • Votes 142

Paul Sian
Real Estate Agent from Cincinnati, Ohio

replied over 1 year ago

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.  

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Check Rosette Top Subjects:
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Remington Lyman
Real Estate Agent from Columbus, OH

replied over 1 year ago

@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.

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Check Rosette Top Subject:
Finding & Screening Tenants
  • Posts 356
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Kris Wong
Rental Property Investor from Austin, TX

replied over 1 year ago

Generally speaking, I would expect to pay higher prices in Cbus than Cincy. The higher growth rate isn't "free". =)

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