Even on a $200k property, the last $50k of equity is basically unusable unless you sell/liquidate.

Purchase price: $290,000 Cash invested: $290,000 4-plex in Syracuse, purchased at 60% of average market rent.

Many also require seasoning and sourcing of these funds.With no experience, most lenders will want to see 20-25% down on the purchase price, but there are some exceptions. 

Needing liquidity?

Once you get the first few performing, you could rinse and repeat the process every couple of years, letting appreciation and debt paydown help fund the next purchase.

Was it better opportunities elsewhere, needing liquidity for another deal, or just time to rebalance the portfolio?

My background: Built and managed a 33-door multifamily portfolio worth $7M using creative financing and OPM before strategically liquidating post-COVID.

I’ve committed to investing and have the liquidity to explore many options.

Congrats on the growth of your business, and it’s great that you’re already thinking about how to plan for life after a major liquidity event.

However, you can often get a lender to make an exception on that when there are compensating factors such as:-Large amount of comps nearby which are of the same tiny square footage (this is most important part)-Liquid Reserves, FICO, DSCR, etc all exceeding the standard requirements by a lot -Lower LTV