How to buy a multi with OPM; what do they get out of it?

[Kera Covani]

Hi Bigger Pockets Community,

I want to increase my portfolio (one SFH at this time) by adding a small multi unit rental. Two of the units I have looked at range between 400K-1Mil and are both Quads. What are the best ways to obtain financing utilizing OPM? Do I use OPM for the down payment and if so, how and what should I expect to give in return? At what point would they receive their down payment back or would I just provide an annual/monthly interest payment to them?

If I were to put my own cash in then I would essentially lose all my reserve. The properties don't really need much rehab so a BRRRR is out of the question.

Since both of the properties are 4 units, I was of the understanding that a commercial loan would not be an option. 

Any experience/advice on the subject would be greatly appreciated. 

Thanks, 

Kera 

[Ken Breeze]

Hey Kera, there are many more questions and answers to this this huge and exciting topic and you'll need to invest some more time with awesome people like Peter Harris and Michael Blank. The latter has a blog here on BP and his own podcast. Peter wrote the famous Commercial Real Estate for Dummies book.

There are many more books and free podcasts on this fun real estate strategy but begin with the above resources to start getting your head around it.