Typical commercial loan for 8+ Unit Apartment in Los Angeles

[Joe Yeh]

Curious as to what a reasonable percentage down would I need? 

I don't have steady income so I can't rely on my work to get the rest of the loan. As in, I'll need a commercial loan, based on the current rent of the property.

For example, for a 3 million dollar 8 unit apartment complex, am I looking at 20% or 40-50% with current interest rate levels?

[Khoa Ha]

@Joe Yeh,

Just a word of caution I have been looking at multi-family units within LA, Orange, and Riverside counties and not too many of them will be cash flow positive. I am talking about having a 25% down and an interest rate of 4%. In order for you to possibly see some cash flow for a 3 million dollar purchase you will need roughly $18,500 of rent per month. That mean each of your 8 unit will need to bring in $2312.50 per unit. Below is what I can come up with.

Assumption Notes:

Tax: 1.1%

Insurance: $300 per month.

Vacancy: 5%

Maintenance: 10%

Management: 10%

Break Even at $18,500 per month in revenue.