Loan for a fourplex

[John Burtle]

Hello,

I came across a fourplex that I'd like to try and buy. I have never purchased a home. I have lived in an apartment for the last 8 years. I lived with my father before that. So all of this is new to me. The property cost is $79,900. The income from the property before expenses is $1,890.00. The owner of the building pays for garbage and water. The taxes per year are $3,500. The insurance is around $350.00 per year. He Has it escrow'd in he said.  The property was appraised for $110,000. 

The building was remodeled two years ago. Last year he put a new a/c and heater in one of the units as well as brand new stainless steal appliances. Two of the units have been rented out to the same people for over 5 years. The other two have fairly new renters. What I was hoping to do is take advantage of a first time home buyer loan if possible? I'd live in one of the units and rent the other 3 out. Once someone else moved out I'd raise the rent a little. The current owner hasn't raised the rent in over 5 years.

I talked to a few banks today and they said there's no way what so ever I can purchase this property with a FHA loan or any type of assistance. They said unless I have 20-30% cash to put towards this property no one will talk to me. I was hoping I could get away with 3.5% down. BUT maybe this just isn't going to work at this time. Is there ANY advice anyone could give me? Maybe even banks to talk to? Maybe someone looking for a partner? The property is located in Illinois. The average home goes for around $80-90,000 in the area. Just south of this property the average home goes for well over $120,000. It's in a good part of the town. The population is approximately 20,000 people. I'd appreciate what ever it is you could tell me.