5% downpayment for a 6+ unit building?

[Andrea Galvez]

Hello Everyone, I'm interested in a building with 6 units in Indiana, but I dont have enough money for a 20% down on a conventional. Does the 5% down applies on buildings with more than 4 units as well? 

And a second question, How much interest should I pay to the people lending me some money? I was going to give them a 10% APY for keeping the money with me for 3 years, is that good? too low? too high? 

[Conner Olsen]

Quote from @Andrea Galvez:

Hello Everyone, I'm interested in a building with 6 units in Indiana, but I dont have enough money for a 20% down on a conventional. Does the 5% down applies on buildings with more than 4 units as well? 

And a second question, How much interest should I pay to the people lending me some money? I was going to give them a 10% APY for keeping the money with me for 3 years, is that good? too low? too high? 

 Once you go to 5 units, the property is technically considered commercial property to banks so you'd need to get a commercial loan. Those loans typically require 20-25%. When considering returns to give investors, think about what kind of return they can get elsewhere. What would be the return if they put it in the stock market, bonds, syndications, real estate notes, etc.