Is a 15% down for a duplex the standard?

[Timothy Chi]

Hi everybody! Looking to purchase my first property over this next year, ideally in Bellingham, WA. It's slim pickins over there right now but I'm patiently waiting for something to pop up. I've been reaching out to lenders in the area and trying to get an idea how much cash to close I would need. I've called quite a few and it seems most banks require a 15% down payment for specifically a MFR.

I wanted to reach out to the community to see what everyone else's experience with this was.  I was hoping to put a 5% down on my first property but if this 15% is the standard, then I may have to start with a SFR. I appreciate any other advice or insight.  Thank you in advance!

[Erik W.]

In short, "No".  If you want a ballpark figure then the down payment could be anywhere from 0% - 30% depending on a host of factors including your credit, net worth, income stream, the property type, the lender's requirements, and the loan type.

Years ago, the "standard" for investment property was 20% down, but there are tons of way to avoid that: Private lenders, HELs/HELOCs, hard money, investing partners, FHA/VA, etc.

Be advised that low down home/plexes do not cash flow well and are ripe for disaster when the renting market slows down.  Be sure you have deep reserves and can survive for months without rent while at the same time being able to do major capital expenses.