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Updated about 1 year ago on . Most recent reply

4+ unit properties
Hello,
I am looking at 2 properties, one 2 unit property that I have put in an offer of about 120k that can generate positive cashflow of $600 per month and another which is a 6 unit property where I have put in an offer of 350k that can generate $2000 cashflow.
I have a bank ready to lend a mortgage at 7% for the 2 unit property. However, the bank indicated they cannot finance the 6-unit property and I would need a commercial loan for it.
Can you please let me know how commercial property mortgages differ for a residential property mortgages and if there would be a substantial difference in rates? Based on the information, would it make sense to move forward with the 2 unit property or a 6 unit one? It seems that the 2 unit generates only $600 monthly cashflow. However, I could add more smaller properties to build the cashflow.
Any guidance would be great.
Thank you.
Most Popular Reply

Hey Manan, it depends on your experience and knowledge in the business. The larger multifamily properties can create great cash-flow but you can also make costly mistakes.
As for the difference in loans, I can send you a list of lenders in Ohio. Commercial lenders will be able to answer this question accurately for you.
- Samuel Diouf
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- (614) 662-1652
