All Forum Posts by: Karl Kauper

Hi All,
This is a very basic question, as I am relatively inexperienced with REI. How different are typical mortgage terms for 5+ unit apartment buildings compared with 1-4 unit? I have owned two 2-family homes, so I am familiar with the typical mortgage terms for that type of small apartment building, but I know next to nothing about 5+. I am trying to decide whether to buy a 1-4 unit or a 5+ unit as my next purchase, but I am just starting to educate myself about these slightly larger buildings. I may try to buy a 5 or 6/7-unit building, but not if the loan terms are dramatically less favorable. For example, are interest rates typically far higher? And, if typical loan terms are typically far higher for these slightly bigger buildings, are there other financial advantages to buying, say, a 6-unit vs a 3 or 4 unit that would outweigh the disadvantages? Lastly, can anyone recommend any resources that I could use to educate myself regarding such basics? Thank you for any insights!

- Karl

My wife and I are MF investors from Brooklyn interested in PA. Thanks for all the great information in this thread! We intend to attend at least one of the Allentown RE meetups in the near future if they are still taking place. Thanks.

Hi - I would also be interested. My wife and I live in Sunset Park, Brooklyn, and we are considering buying a MF in SI if the numbers make sense.

Thank you all for all the information.

Thank you, both. We definitely are looking for cash flow primarily, and we would be willing to look at out-if-state markets if the numbers make the most sense in Florida or the Midwest, etc. We probably want a cash-flowing multi-family. Does anyone have suggestions about specific markets to look in? Or, if that’s too broad a question, can anyone recommend a particular means or resource for finding the right market?

Hi - I own a house in Brooklyn, NY, and will shortly be refinancing to pull out about $200k to invest in other properties. I am leaning toward multi-families because I have experience with this type of property but would consider other types of property.  I would probably prefer to remain near NYC, but would consider out-of-state also or even overseas.  I am fairly new to this (although I have owned my Brooklyn 2-family for twenty years), so I would appreciate any advice regarding where I can find the best deals.  Most (maybe all) of Brooklyn and NYC generally is probably out of my price range. I am considering the Philly and Jersey City areas (and DC or Chicago if the deal makes the distance worth it). An acquaintance recently bought a condo in Berlin, Germany with a 1.3% mortgage interest rate (to my amazement), so that's also appealing, although the city just approved a 5-year rent freeze.  I'm obviously having difficulties focusing, so any advice would be appreciated. Thanks!!