SFHs to Multifamily (apartments)

[Michael Opper]

I'm looking to buy my first multifamily, apartment complex. I currently have a handful of single family Section 8 rental properties.

Ultimately I'm looking to understand the best way or multiple ways of coming up with the down payment for something that’s priced in the 2M-3M range. I’d prefer not to have a partner if possible. Thoughts on pulling money out of my primary residence to cover the down payment or are there better ways?

If anyone has experience making this jump, I’d love to pick your brain!

Thanks!

[Jackson Ebersole]

Hi Michael,

Getting funding for a down payment on real estate can be challenging, as most of the funding typically covers the other 80-90% of the property's price. However, there are several options to consider beyond using your savings. For example, you could refinance one of your rental properties at a low Loan-to-Value (LTV) ratio.

If you prefer not to involve a partner in the down payment, you might consider asking a family member or friend for a loan. Ensure you have a clear agreement in place to avoid potential issues.

Real estate crowdfunding platforms, such as GoFundMe or Kickstarter, can also be used to raise funds for a down payment. However, this approach may require a compelling story or project to attract contributions.

Some people opt for personal loans to cover the down payment, though this can come with high interest rates.

Lastly, some private lenders may base your loan amount on the property's as-is value rather than the purchase price. If you're buying the property at a low price, this might allow you to cover 100% of the price with the loan.

Regards,

Jackson.