Multifamily Loan Types

[Gaetano Citera]

Hi all,

I'm getting started in my real estate journey, I currently flip homes using a hard money lender. I want to buy and hold some properties and am looking for 2-4 unit multifamily's. I have been underwriting many deals recently but it seems like the numbers almost never work out to good cash on cash IRR returns. I am curious about loan structures for this property type.

I have mainly been using 12-15 year loan terms (amortized over 12-15 years, no balloon) with 7% interest in my underwriting

I have only spoke with hard money lenders, so am not too familiar with my options for traditional financing.

Can I use conventional 20-30 year financing for this property type or am I stuck in the commercial loan category with shorter terms or balloon payments when the loan matures?

For reference I live in and want to invest in the Hudson Valley NY. Any input is appreciated!