Criteria To Obtain Financing For This MultiFamily Deal In Houston

[Danny N.]

Multi Unit For Sale

I would like to purchase this rental property above. I have up to $350k to use as a downpayment, the property can be had for $1.3M the realtor told me, it is 14 units and doing close to $15,000/mo gross, but in one of the best areas in town. I had problems arranging financing a year and a half ago for a rental property that was $500k bc I only show $165k income, so I had to put 50% down. Right now my balance sheet stands at

$1.35M personal residence

$650k vacation rental

$200k piece of land

$200k piece of land

$65k rental home

$65k rental home

$60k rental home

I also have a couple rental properties + land in another country but those dont count according to the bank I financed my vacation home with(chase).

Debts $230k mortgage on vacation home, $200k mortgage on residence, $75k loan on a classic car. Overall net worth $2.5-2.7 range in the US and no credit card debt. 

I would like to finance this multifamily bc its down the street from my home and would be easy to manage for me, what options do I have to get financing for this with the limited cash & debt to income that I have? Thank you

[Andrew Schena]

@Danny N. Michael is right. Your profile seems to be fine and the commercial bank will not look at those. What theyvwill look at is the property's income stream and if you've got enough experience to manage the property yourself going After closing. 

You say the property Gross's 15K/mo, but you should verify that and the expenses first in your due dilligence. Then you can determine the NOI and see if the property is actually worth the $1.3M they are asking. That's what the bank will do. If the property covers the 1.2 DSCR you then have to evaluate what the ROI Is and if it meets your personal investing criteria. Best of luck!