Help! Looking to purchase my first apartment building

[Joseph Duenas]

Please help me with my first offer for an apartment building: 

Subject: Six Unit Apartment building on the market for $800K. Only three of the six units are occupied. I believe I can get $1,000 for each unit after some renovations. The building is actually set up as condos, so the six units can eventually be sold individually 

Offer: I would like to offer $510K for the building. If the owner accepts this, It will give me a great positive cash flow once all units are rented. 

Questions:

1. Will the bank require a down payment of me? If so, how much? 

2. What kind of loan and terms will the bank give me on this building? 

3. How will the bank determine the appraised value of the building? 

4. Will the appraised value of the building go, once all the units are rented? If so, should I refinance it at that time and cash out? 

Thank you. I look forward and appreciate the feedback. 

[Mike R.]

Not tying to be a jerk, but I strongly suggest that you do more homework on multifamily investing before you make any offers.   Good luck