Getting started

[Nicole Nichols]

My husband and I are trying to get started in real estate investing and we could use some advice. We've partnered with 2 friends and want to purchase either a 4-plex or small apartment building (up to 12 units). My understanding is that a 4-plex could qualify for a residential loan which would mean a lower down payment (20% vs 30-35% for commercial loans, or so I'm told), lower interest rates and longer term for repayment. However, if none of us plan to live in this 4-plex is it likely that we would be able to obtain a conventional residential loan (we have an FHA loan on our current home)?