Can I use bridge loan for downpayment for multifamily apartment?

[Mike Bloom]

Is it possible to pay for a down payment on a multifamily apartment using a bridge loan? I don't have enough money to buy a 15-unit apartment in Texas; I only have about 15%. I had the notion of using a bridge loan as a down payment, then rehabbing the property and raising the rentals to market value before refinancing.

[Bjorn Ahlblad]

@Mike Bloom you need a lot more money and resources. Unless you want to lose your shirt be prepared. The bank will want 25% down. Net worth equal to loan amount. 12 mos reserves and expertise. So be prepared to partner if you do not qualify on your own. You do not want to run low on money when taking on a project like this.

On the bright side the potential in making a good building even better is huge. I have increased income in my 12 unit from 75k to 125k in three years. In between tenants we do whatever is necessary and no more-paint, flooring, fixtures etc. We are responsive to tenant requests and we screen very diligently. Very happy with the investment.