Down Payment On Multi Unit Property
My thoughts are to put as little down payment as possible for an investment property. 5% is an optimal number for me. I am just wondering what is the general percentage that investors put down as a down payment on a multi unit property.
Kinda a loaded question since it all depends on the seller, financing options, etc. Who is the seller, what do they really need, are you trying to do traditional financing?
Christian "The Solutions Kid" Beebe
[addsig]
The simple answer is, it all depends.
If the seller is flexible, you might be able to get away with paying close to nothing. But more then likely, the seller will not be flexible to that extent.
You can do regular, vanilla type financing at 10% down for a property containing up to 4-units. Anything larger than that is considered a commercial property, and you'll likely need to put down 15-25%.
Hard money lenders might be even more flexible, but I've never used them so someone else will be better suited to speak on that subject.
Good luck
[addsig]
As stated above you can do 5% down on samller residential (4 units or less). I see 100% financing on larger properties regulary based on the value. These are much larger deals, minimum of $500K and stricly commercial.
I am a mortgage broker in Illinois, and there is one program that is available in Illinois for Multi families (5 units or more), that will allow 5% down and a 20% seller second mortgage, with the lender lending a 75% first mortgage. Credit scores must be 620 or higher, and the rates are good.
There are also programs for 1 to 4 units where investors can buy for as little down as 5%, and if the credit is really strong, you can do it with no income verification.
If a buyer plans to occupy a property, there are many many options for no money down, up to 4 units.
Anyone in Illinois needing more information can private message me.[ Edited by mortgageman on Date 11/10/2003 ]