Buy and Hold

[Anthony Rawls]

So there's about 4 buildings located near my apartment complex, these are 5-6 Bed and 2-3 bath in each building with 3-4 parking stalls for each building as well being sold by a real estate company.. The cheapest was a little less than 600,000 and the highest ranges a little under 700,000.. The real estate company stated these building just finished being built this year.. I am in Hawaii so the real estate market is expensive but value raises greatly on these property's due to limited space and cost of living... I would love to due a buy and hold by I can't even afford 10% of the 20% required for a loan I surely wouldn't get at this point, what is the best angle to come at with these properties? Thanks

[Ryan Gillette]

What's the unit count in the building? If you're willing to live there, there are 10% down jumbo lenders out there. For a long term thing, if you go that route, I would highly suggest finding a jumbo lender willing to do a fixed rate. Adjustable rates are pretty common in the jumbo market- even if the rate is attractive in the 3's, you don't want to get stuck in the 5-7's on a 600K loan. 

Short of that, you're looking at a commercial loan or hard money. Both are going to require a significant down payment- just from my experience they might want to see a 25-30% equity position coming from you on a multi-unit.