New investor looking for advice

[Nik Talpe]

I want to invest in a multi family unit. I talked to a bank for conventional loan and either A: they require 25% down - which might work but prefer keeping a little cash for future deals or B: if it’s over 4 units he suggested to go with a commercial loan.

Any experience? I'd like to invest using my LLC.

Example 500K, 6 unit, steady cashflow, willing to put in around 60-70 down.

What would be my options?

PS - owner occupied is no option for me. I live rent free now.

Thx.

[Peter Nikic]

As a ballpark figure, I would expect to have in cash 30% of anything I buy. Try to get financing for 25% (or less if possible, I've never been able to get less than 25%), then you'll have 5% extra for closing and cushion. 

BTW the cushion is always good to have. Inevitably there always seems to be more problems in the first year of ownership. At least that's what I've experienced, so a little extra cushion is good to have.