Expensive area, buying multifamily with a friend to live in

[Lesley Govan]

Hi,

I have been considering buying a multifamily with a friend to live in. We would live in separate units. I have a some questions.

1. The area is expensive so if we both put down 10% we can get a decent payment a month so both of our living expenses are low but if the numbers don't cash flow should I still do it? I know you can't count on appreciation but it's highly likely.

2. do we put down 20% if we are living in it or try to use as little of our own money as possible? I guess the more money down, more equity right? 

3. if you figure your numbers based on 20% down and refi out after a couple of years to take your money out, you'll be paying a higher mortgage payment because you took your money out? Right? I get confused with the refi...

Any opinions welcome! 

Thanks