Percent down on a multi-family home

[Ben Lagerlund]

I am looking to purchase a multi-family home with 3 partners (we plan this to be the first of many). We are educating ourselves and raising capital at the moment.

My biggest question is what % down we should be expecting? What is the best resource for finding information like this. If anyone could even offer a range, that would be much appreciated.

Also looking to get involved in the community, and connect with local real estate investors!

[Katherine Serrell]

- For non-owner occupied properties, you can expect to pay between 20-25% plus another 1-3% in closing costs. Some lenders offer 15% down loans but those loans typically come with higher fees and worse rates so you are normally better off putting down the 20-25% for non-owner occupied properties. 

Lastly, you are also normally required to have reserves. I have seen this range from 3-6 months of your payment amount. Ex: if your estimated monthly payment is $3,000.. you may be required to have anywhere from 9-18k in reserves. 

- For owner occupied properties of 2-4 units you can expect to pay as little as 0%-5% down plus 1-3% in closing costs depending on the loan product. 

Sometimes you can get the seller to pay these closing costs depending on how you structure the deal. 

Hope this helps!