How much is down payment required for 8 unit multi family?

Asked by Kevin, Dallas, TX Tue Mar 10, 2009

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5
Daniel Bretz…, Agent, Seattle, WA
Wed Mar 11, 2009
I am selling a nine unit apartment building in Seattle Rainier Beach area. My banker said that he would loan money on it with a 35% down payment at 6.75 % interest. If you are interested in this building, you can buy it with about $300k down, and have a positive cash flow of $500 a month after expenses and debt service. I am the owner and I am a Washington State Real Estate Agent Please call me if you are interested in buy or selling a commercial property in Southeast Seattle area. http://danielbretzke.blogspot.com/
0 votes
Marty S, , Irvine, CA
Wed Mar 11, 2009
At least 20%.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com
0 votes
Vicky Chrisn…, Agent, Purcellvile, VA
Wed Mar 11, 2009
Agreed... and you need to be talking to commercial lenders, not residential. The commercial sector is just starting its downward spiral. Watch what you're paying for this property, it will be losing value soon. However, if it has positive cash flow, you should be OK assuming you're planning to hold for long term. Of course, there are no guarrantees. Not trying to rain on your parade too much, as multifamily is the one portion of commercial RE that is expected to continue to hold it's own. Having said that, you will be soon fighting losing tenants who are becoming first time home buyers as prices to buy are so low right now.

If this type of investment is new to you (and I suspect by your question, it is), be sure you talk to some experienced people. I can even connect you to a few that you can talk to to pick their brains, and who knows, you may find they'd be interested in partnering with you. Contact me directly at vchrisner@kw.com if you want to be put in touch with them. Good luck!
Web Reference:  http://www.vickychrisner.com
0 votes
Patrick Beri…, Agent, Seattle, WA
Tue Mar 10, 2009
True dat, your question should be directed to your lender. If you need a referral just let one of us know. In some cases you might be able to find a seller who'll carry a note, but that will might require more of a downpayment than a mortgage, depending on the price.
0 votes
SeattleHome.…, Agent, Seattle, WA
Tue Mar 10, 2009
Probably 30%, but you really need to get in touch with a lender directly. It will be dependent on your personal credit/financial status.
0 votes
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