Funding advice for 10 unit occupied section 8

[Rob M]

Found a 10 unit listed for $450k

Fully occupied with long term section 8 occupants.

This will be my first commercial property.

I own a home with $100k+ in equity.

Ideally looking to put down as little as possible to purchase this.

Any advice as to which lenders offer financing based on current rental numbers to lessen down payments ?

[Jaysen Medhurst]

@Rob M, since you're talking about commercial multi-family, the lender will consider a loan based on the property's profitability. They will calculate it's Debt-Service Coverage Ratio (DSCR) and expect at least 1.2 or better (depending on the lender).

They will also insist on 25% down (maybe 20%, if you get lucky). No wiggle room on this, no matter how profitable the property is. They will also insist that you have ~6 months of reserves to cover debt, taxes, and insurance should something go askew.

If you share your analysis of the property, the community will be happy to take a look.