Posted by Jim Locker on January 11, 2001 at 15:45:12:
Your best opportunity to get a low money down deal is if you live in it and have good credit. However, a 10 unit will not qualify under FNMA, and all lenders will treat it as a commercial transaction.
You might try to get the seller to carry back some of it.
The price looks attractive, but you should take a look at the heating bills. From your description, I presume you pay the heat.
multi-unit purchase - Posted by Eli
Posted by Eli on January 11, 2001 at 15:37:15:
I am new to this and would like to hear ideas from anyone willing to give them. I have found a 10 bed 10 bath property which is divided into 10 individual units. It is on the market for $165,000. It is located near a college and each unit rents out for about $400 per month. I am a first time home buyer, and I would also like to live in one of the apartments and possibly keep another one for guests. I can come up with some down payment money, but not much. What is the best way to come up with the lowest percent down payment? Thanks!
Re: multi-unit purchase - Posted by phil fernandez
Posted by phil fernandez on January 11, 2001 at 18:33:34:
One of the simplest, but often overlooked ways to lower your downpayment requirements on a multi unit apartment property would be to close on the 1st or 2nd of the month and get rent credits and the existing deposits credited to you.( Assuming your state allows you to comingle security deposits.)
In your example : $400 per unit rent times ten units would give you $4,000 to apply toward your downpayment. Plus the security deposits. If they are also $400 per unit that would give you an additional $4,000 for a total of $8,000 of your down.