Updated about 5 years ago on . Most recent reply
6 Unit Investment Property
Hi,
I came across a 6 unit property here in PA and the landlord is having tough time to sell as it comes under commercial lending. It needs a major rehab to get all 6 units ready to be occupied. I am wondering what are the hurdles in getting this deal. Is lending going to be a problem with 6 unit properties? Any thoughts would be greatly appreciated.
Most Popular Reply
@Krishna Vakk
Hi Krishna.
The answer for this is obviously deal specific and has a lot of moving parts. But generally, you should be able to get financing for the deal. Commercial property has significantly different lending requirements than single family. You will likely need to put more money up front, or go with some kind of bridge loan. I would recommend building a relationship with a local banker (not national) because they will have more flexibility on what they can do.
As I am sure you know, the first one is the hardest but once you have proven experience lending on these types of properties should be no issue.