Can I finance a 5+ Multi Family as my first rental?

[Rafael Floresta]

I've been trying to find a good deal in my area for buy and hold, but it seems a impossible task. The SFH have too much property tax and the price doesnt match the income. So I have been looking into buying a 5+ Multi Family so I can get out of the home owners area and do business based on income.

I have enough money to put skin on the game, but I can't buy it all cash. My question is, can I finance it as my first rental? What types of bank should I look for?

[Stewart Beal]

In 2002 I was 19 years old and wanted to purchase my first rental property. I chose 15 N. Hamilton, Ypsilanti which is directly across the street from the Eastern Michigan University Business School. The property was a 5 unit so I could not get a residential loan and instead got a commercial loan from a local bank. I put down (approximately) $50,000 in cash and borrowed $209,000 at 5 percent, 5 year term, 20 year amortization. I still own the property today and have been very satisfied with the investment. I would strongly suggest you find a local banker that is interested in your story and your deal.