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Updated 8 months ago on . Most recent reply

Loan Type for 6 plex-building
Hello, I am new here. I am looking at a a 6 plex around 1.1M. I want to know what kind of loan I should go for assuming everything is check out. I have enough to put 20-30% as a down payment with ~800 credit score. I called couple Fannie Mae direct partners, and they said they can only do 1M loan at the minimum for multifamily loan. TIA
Most Popular Reply

Obviously anyone who said great deal or sounds like a great didn’t read your post. They have no idea where the property is, how much rent it’s bringing in, or what it’s worth. It could be in a small town in the Midwest and only worth $400k or NYC and be worth multiple millions.
Does it being in $11,000/mo for the 1% rule?
Does it being in at least $7,200/mo in rent to cover 1.2% DSCR loan if you put $275k down and the insurance/property taxes/utilities are under $500/mo? If so that would give you about an 5%COC and a 8% total return. So that would be my BARE minimum. (Increase the minimum rental income by 110% of the amount the taxes/insurance/utilities are over $500.)