Financing for a 4-unit multi-family in MI

[Vince Gethings]

Good Evening Bigger Pockets!

I am seeking some guidance on ways to finance a 4-unit in central Michigan. I was just turned down for a residential 30 yr. because the way Fannie and Freddie apply the debt/income ratio. Tomorrow I am going to meet with a local commercial lender to see if a 5/1 Arm or other commercial options are logical, after that I was going to pursue seller financing. I don't have any rich uncles either. Any advice and guidance is very appreciated. Below are my financials and the properties.

Me:

credit score: 800+

Debt: $0

Income: 70K yr

expenses: $2,100

Current Mortgage: none, currently rent

money to invest: 100K

Property:

Purchase Price: $170,000.00

Purchase Closing Costs: $1,000.00

Estimated Repair Costs: $20,000.00

Total Cost of Project: $191,000.00

After Repair Value $200,000.00

Monthly Income: $2,950.00

Monthly Expenses: $2,003.96

Monthly Cash Flow: $946.04

Pro Forma Cap Rate: 9.57%

NOI: $19,147.00

Cash on Cash ROI: 20.64%

Purchase Cap Rate: 11.26%

Down Payment: $34,000.00

Loan Amount: $139,400.00

Loan Points: $0.00

Loan Fees: $3,400.00

Amortized Over: 30 years

Loan Interest Rate: 3.800%

Monthly P&I: $649.54