Down payment for multiple condos

[Toni Fowler]

I could possibly have an opportunity to purchase 8 condos together (in Kansas). This would be my first true investment property. (I just purchased a home and will be turning it into a rental later next year, and also have ownership in a duplex that my parents purchased). 6 of the condos are already occupied, 1 is going through an eviction and 1 is vacant. I have already obtained info about rents and expenses from 2013 and this year. It would be a great investment. However, I don't have the required down payment and was wondering if anyone would have any suggestions. The asking price is $190k. I've got $15k from a relative. That leaves $23k that I need to come up with. I've googled and searched these forums, so I've seen all the options your going to get with a basic search. I do not yet have any equity in my home, as I just purchased it a few months ago. At the same time that I purchased my home, my car died. Instead of acquiring debt, I used all of my cash to purchase a new one. If it weren't for that, I would have at least another 10k of my own. Now, I have nothing to show for the hard saving I've been doing for the last year and a half.

Anyway, I read an undetailed suggestion of getting a 2nd mortgage. Maybe someone could shed some light on this? I am partnering up with my brother. He doesn't have great credit or any money saved but owns a renovation business and has offered to do the maintenance in exchange for ownership. This would obviously keep maintenance costs down. Also, I am the Assistant Property Manager of over 500 homes, so I'm not jumping into this blindly. 

Do I even have a chance of making it happen?

Thanks so much

[Jon Holdman]

How about taking on an equity partner?  You say $15K is coming from a relative.  Is that a loan or are they a partner in the deal?  If they're a partner and you take on another then you're giving up a large percentage of the deal.

Lenders will often ask if the down payment is borrowed.  So, doing equity investors will be more likely to pass muster with the lenders than borrowing down payments.

To build on @Joe Impagliazzo "warrant-ability" is the more general issue. If the project isn't warrantable you'll have to get a commercial lender and 25% or more may be required.  If it is warrantable then conventional might be possible.  Even then you will need 25% down for a bunch of loans like that.