Small multifamily financing

[Brandy Y.]

Hi All,
New to BP.
what are the available options for a small multifamily apartment financing(<500 k,< 50 units).
Consider that the investor is someone with no previous real estate exp, employed with annual salary range in 200k and with credit scores in 770s.
Investor is looking at cashflow investment.
Thanks

[Darryl Dahlen]

As Jon has pointed out, there are banks/credit unions who have CRE loan programs for loans in the 500k and below category.

Your income and credit are good so that won't be an issue, but your inexperience as a landlord could be a problem for some lenders. That can sometimes be offset with the use of a good management company, though.

What kind of down payment do you have? If you were to approach me, I'd tell you to have 30% to put down as well as have 6 months reserves (mortgage and insurance payments) on top of that.

Of course, the property must be above board as well, and by that, I mean it needs to debt service the loan, have a stable occupancy level, good tenants, no large deferred maintenance issues, etc.