Multifamily Financing Frequency Question

[Konrad L.]

Hello,

New investor wannabe here. I am still deciding whether I should do a flip first or buy a multifamily rental.

If I decide to go the multifamily way, but not live in it, I realize that I'll need a conventional with 20% down, which I would be able to put down.

What I'm a little worried about, is how soon after buying that first one, would I be able to seek another conventional loan for the next multifamily?

Since I put 20% on the first one, would I be able to use that as equity to get the next home, and then the equity on that one for the third? Also, how about the net rental income from that first one towards my overall income?

Is it true that banks want two years of rental experience in order for them to acknowledge the rental income that I'd have coming in from the first home? In that case, could I just use the equity?

So many questions...

Thanks in advance!

Konrad

[Brie Schmidt]

to qualify for an investment property you will need 20-25% down plus closing costs plus 6 months of payments. Then for the next one you will need the same. As Jon said, if you improve on the property you will be able to pull out the equity 75% LTV after at least 6 months of title seasoning.

Lenders do want 2 years of taclx returns to use that income but if you have 12+ months of reserves some will waive it