Multifamily Financing (Small loan, Rehab, 3 Yr Experience)

[Zack Reder]

Hello BP!

I have lurked these forums for years and found connections here that I've contacted outside of posts with great success. I'm looking for some questions answered so I don't continue to melt my mind through researching small local bank info pages.

I have a few questions around MF financing in Chicago and any answers or references would be great!

• My partner and I have been DIY rehabbing a 4 unit in the area over the past 2.5 years and have done a pretty good job netting 6k/month gross on a 500k property in a good area with room for rents to increase more. Will experience be an issue with receiving a commercial MF 5+ loan?
• We make pretty good salaries at our day jobs outside of RE - making a combined 17k/month gross. I've heard this is meaningless for Commercial MF - is there any value in our incomes?
• We are going to be looking for a small MF loan. I've heard this is relatively difficult, but through enough calling around a small local bank may be willing to put up with this small loan. Any tips or pointers on this piece? The property I'm looking at would be around 600-800k
• One property I'm interested in may require some rehab work. I'm not willing to do hard money and would rather just look into financing options with longer balloon periods - any suggestions on where I should look? Also, I realize that fannie/freddie have some rehab loans but I'm pretty sure they are $1M+ minimums

Any thoughts or answers would be appreciated! Happy to add details where needed and clarify something as I'm pretty consistently lurking here. Also open to any war stories on the topic.

Thanks!
ZR