If I were to buy a 2-4 bedroom house or apartment building as an income producing investment, what is the

Asked by Edward, 11419 Sun Jan 25, 2009

generally accepted downpayment that investors choose to pay so that they can get a positive cash flow? Is is possible to get a fixed rate mortgage for an non-owner occupied property?

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Ralph Windsc…, Agent, Hauppauge, NY
Tue Jan 27, 2009
Your question is really two-fold: first, how much do you have to put down in order to make the mortgage low enough so you have a positive cash flow and second, how much would you have to put down in order to get bank approval for a loan on such a property. First, each property would have to evaluated separately according to what the mortgage is and how much rental income is typical in that particular area for that type of building. Also, if you bought a 2 family house and lived in it as your primary residence, the bank would consider the rent if the current owner has it rented with a lease. Second, you would have to put down enough plus the appraisal would have to come in right in order for banks now to offer a commercial or business loan. Good luck. If I can assist you, please contact me.

Ralph Windschuh
Certified Buyer Representative
Century 21 Princeton Properties
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Edward, , 11419
Mon Jan 26, 2009
OK, I see elsewhere that for commercial property 30% down and a 15 Year mortgage is usual. I'm just trying to see how much I'd need to have for a downpayment. I'm not even close right now. Anyone know a good place to find listings of commercial real estate in Queens on the internet?
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Everett Perry, Agent, Fresh Meadows, NY
Mon Jan 26, 2009
In this day and age you MUST assume that you have to put down 20%. Money might loosen up in the next 12 months but when it does prices may start to go back up.
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Gail Gladsto…, Agent, 11743, NY
Sun Jan 25, 2009
Investment properties usually command a higher downpayment. The person you need to speak with is a mortgage broker/lender, not a Realtor.

If you need some names...contact me at Gail@GailGladstone.com and I will recommend some commercial/investor lenders from whom you can receive ample information.
Web Reference:  http://GailGladstone.com
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