New to buying apartments looking for advice

[Eric Jennings]

Hi guys coming this week I may have an opportunity to buy a 5 unit about 4 hours away from me, this would be my first deal ever, what are some things I should consider that might be a bit more obscure? Did you mess up anything major or minor on your first multi family deal? Help me learn from your mistakes 

Thanks in advance 

Eric 

[Brian Metz]

Be ready for commercial financing since it’s over 4 units. What are your plans with the property and is it stabilized? My first one ever was a 6 unit and at the time if purchase only 4 of the 6 were occupied because the owner had just rehabbed two units. When I called big banks though they wouldn’t qualify it for financing because it was unstabilized in their eyes. I ended up doing a cash purchase and then refi shortly after, but make sure you have a plan in place. And know if you need short term lending, I.e. a bridge loan, to stabilize it, raise rents, etc to season it before you get longer term financing.

Best of luck!

Cheers,

Brian