New Mutli-Family Investor in Southeastern WI - Questions on Banks

[Geoff Stuhr]

Hi everyone,

Earlier this year I purchased a duplex in Waukesha, WI and LOVE IT... I did an FHA loan (for househacking) and recently just put an offer on a new duplex that was accepted! Yippee! All of the calculations I did were based on putting 20% down, however when I talked to the first bank they have told me that I would need to put 25% down if I do not intend on living in it... I have 25% but am less comfortable with the deal at this point, and secondly I really wanted to be able to leverage my money for 5x what it's worth rather than 4x. The cash on cash return still makes a ton of sense, but I'm just wondering if anyone has been in this situation before (maybe I moved on it a bit too quickly), or if anyone knows of a bank that would let me only put down 20%. For information's sake - the accepted offer was for $100,000 on a duplex in West Allis, WI.

Any advice is greatly appreciated!

Geoff Stuhr