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Updated over 2 years ago on . Most recent reply

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Jack Miller
  • Rental Property Investor
  • Edmond, OK
3
Votes |
9
Posts

Qualification for Multifamily Properties?

Jack Miller
  • Rental Property Investor
  • Edmond, OK
Posted

Hello All!

I’m an investor local to Oklahoma City. I’ve done a few deals in the past, all of which have been single family and one duplex. I’ve decided to make the switch to multifamily because of the attractive cash flow that comes with.

In doing so I’ve been listening to more podcasts on the subject and have heard that when closing on 5 units and more the approval process is more based on the property and less on the individual. Does this mean that as long as I can meet the 20% down payment and the numbers work a bank will more than likely approve me?

Thanks in advance for your time in answering and reading!

Most Popular Reply

User Stats

497
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614
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Charles Seaman
  • Apartment Syndicator
  • Charlotte, NC
614
Votes |
497
Posts
Charles Seaman
  • Apartment Syndicator
  • Charlotte, NC
Replied

@Jack Miller While it's true that the underwriting for commercial loans is more focused on the asset than the individual or the borrower, it doesn't mean that it's solely focused on the asset.  The creditworthiness of the borrower is still important and most lenders will underwrite any individual that has control over the asset.  What size multifamily properties are you looking at?  The criteria might vary a bit for deals with loans greater than $1MM compared to deals with loans less than $1MM.

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