Posted by Ryan on July 24, 2005 at 11:21:52:
Thanks Jimmy. Very helpful.
Multi-family purchase question!!! - Posted by Ryan
Posted by Ryan on July 23, 2005 at 21:12:16:
I am in the process of looking at purchasing a multi-family home with 9 rental units. When I go to apply for a mortgage, would this be considered a residential purchase or a commercial purchase due to the amount of units that I am purchasing? If it is commercial, is there a lender that would do creative financing and no money down or would I have to come up with the customary 20-25% down and no creative financing? Last but not least, would the insurance have to be a commercial policy or a residential non owner occupied property?
Re: Multi-family purchase question!!! - Posted by Jimmy
Posted by Jimmy on July 24, 2005 at 08:13:09:
Financing a 9-unit puts you in the commercial lending world. I actually prefer commercial lending, for a lot of reasons detailed many times in the bulletin board.
The lenders will take a good hard look at you. If you pass inspection they will look at the project. And I would not expect to get a 100% loan, or even a 90% loan. If this is important to you, see if the seller can carry paper. Anytime you engage a bank in your deal, you have to play by the bank’s rules.
As for insurance, most residential policies go up to 2 or 4 units. There are plenty of commercial carriers out there who can help you. Talk to some independent P & C brokers in your area, and you can find out what is available.