Minneapolis first time investor

[Anna N.]

Hi everyone, first I'm glad that I am a member of BP. This is my first property investment. My husband and I are looking for 2-4plex to invest in Twin city MN. We got approval a loan about $200k, and $70k cash. The bank asking down payment 25%, and interest 4.25%. My questions are: 1/ is that mean the maximum loan we can have after we put down payment 25% or $200k including the down payment? 2/ whatever it is, if we purchase a MFH with price higher than the loan a little that affordable to put down more cash. Should we do it? 3/ thought most of house investment from 1-4plex requires less than 25% down payment (or 20% ). Is that right? And the which ranges of interest rate is good for property investment? Please any ideas, suggestions would be very appreciated. Thanks so much for your times. Anna. N from Minneapolis

[Bruce Runn]

You can essentially afford a $270,000 duplex/fourplex as 25% down is $67,500.  25% down is it is non owner occupied.  If you live in one of the units, you could get much away with much less than 25%.  4.25% is pretty standard right now.

Have a great day