Anyone Know What I Can Assume As Reasonable...
I am analyzing several different apartment buildings and the only thing I can't be sure of is the mortgage term and rate offered now by lenders.
to any of you with multifamily experience...
what rate is reasonable to use?
do you analyze with a 15 or 30 year term?
also, is 75% LTV reasonable for 8-unit?
Intersted to see replies, around here you can find 15-30yr fixed for multi-units if deal is over 500k, have seen any properties good enough to price that type of mortgage though. You could probably get a good idea by looking at some of the financing attached to proerties, if you can find some with fairly new loans.
Other more common options would be a commerical loan from a local bank. Only 1 bank in my area offers full term fixed rate financing, that would be 15yr at 6.5% (as of 2 weeks ago). Everyone offers the standard commerical loan, which is a 5yr ballon (7yr in some cases), rate is usually Prime + 0-1% (prime is 4.25% at this time), payments are based on either current rate (payment readjusts with rate change), or based on typical long term rate (~6.5%) on a term of 15 or 20yrs.