It is 20% down at least. Make sure you check the rent rolls for the past 3yrs to sure insure all the rent payments are up to date and accurate, this is a very important part of the investment property evaluation process and I recommend asking the current owner for a record of proof of rent payments if you feel unsure about what you are evaluating. In addition to your credit profile and experience, the loan evaluation process will take a really strong look at what the debt-service-ratio of the property is. Typically, 1.5 or above debt-service-ratio is favorable. Keep in mind that your loan will be evaluated at a 5%-7% vacancy discount by the lender as it relates to the debt-service-ratio.
Also look at ways you can cut your expenses over the long term for the investment property while maintaining quality so that you can increase some of the rents on an annual or bi-annual bases. This will increase your overall cash flow year-over-year and will give the property more intrinsic value.
Have you located a property yet? If you are looking to invest in apartments itâ€™s good to have at least two other buildings that will fit your investment criteria as back plans so you can move ahead on your investment goals even if you don't get your first choice. Let me know if I can help you in the property selection process!
Respect and Honor,
Senior Loan Officer
NMLS License 24076
The first person you need to speak to is a mortgage banker if you need a name contact me
directly and i will give you someone to speak to.
There are many things involved, your credit your maximum and how much income there is current and projected for the future if the building is vacant. condition of the building is also a factor.
% can and will vary from 25% to 50%. For example I know of 2 for that are both vacant the banks
want a minimum of 50% DP.
Therefore, once you know how much money you can quality for, and as them to advise with tenants in place and/or vacant . Then we can find you a six family property depending on the locations you are interested in, as well as the condition you are willing and/or able to contend with. There is no sense looking at any building if you do not have these figures available to you, as you would be wasting your time and any agent/sellers time. If you have any further questions please feel free to contact me directly.