New to multifamilies

[Amber Stevens]

Hello,

So far we have 4 sfr in 3 different states. I'm looking at an 8 unit apartment complex. Is it considered commercial financing?  And is that typically 30% down?  I already have 4 conventional loans, so I'm not even sure I could get financing?

Thanks!

[Roy N.]

@Amber Koontz

In multiunit buildings it is preferred to have separately {sub}metered water for each unit.  Most municipalities / water utilities will install a single meter on the water line into the building - they do not care how much water individual units consume.  The builder/owner then installs a manifold with separate water lines to each unit and sub-meters each of those runs.   This allows the landlord to bill each tenant for their specific water consumption.

In smaller residential properties (2-4 units), especially those converted from an SFR, it is rare to have individual water runs to each unit and sub-metering is not possible without a great deal of effort and expense.