How do I qualify for a Apartment complexes!?

[David Wiser]

What are major qualifications to purchase an apartment complex?

How much down, how much personal income do I need, how much in reserves?

[Dave Pate]

Good question. I am also interested in apartments. Just got my first 5-unit apartment rehabbed and rented. It was relatively easy since it was a 1031 exchange and I was able to pay cash. It was really cheap, but it's all cash flow. Now I'm looking for something bigger, say around 20 units. Most lenders want 20% down to finance a commercial property. How do you get into ownership without 20% down? Find an owner and make them an offer with seller financing? What do "hard money" lenders offer?

David, You do need a decent income for financing. There are plenty of loan officers that would quote you numbers and let you know what you may qualify for.  I am a big believer in insurance for accident claims. Consider an umbrella policy too. They are very reasonable and can give you a couple of million dollars of liability coverage. Remember what your insurance deductible is and factor that into your reserves.