Financing options 10-15% downpayment

[Mikhail Katz]

Hey I came across a deal I am interested in but currently have only 10% for a downpayment.

It's a multifamily 4 units for 180k. Also it is out of state, in OH and I live in CA so I won't be able to occupy it and also it is all rented out as I understand.

I have good income and credit score but as far as I understand conventional loan will require to put 25% down. I would like to find something for 10-15%.

What other options do I have? Hard money loan? But I am worried about refinancing it since I have no idea what would be the appraisal value of this property.

[Andrew Postell]

@Mikhail Katz for a conventional loan (Fannie/Freddie) you will have to put down 25% for a 2-4 unit property. You can put down 15% down for a Single Family home but they will require 25% for multi-unit. So the option that you have, and one that is followed very commonly, is buying a property in disrepair, and buying it well below market value, repairing it with a hard money loan, and leaving 25% equity in it so you can refinance. In other words, the BRRR method. We use this method to LIMIT our out of pocket costs. Otherwise the downpayment requirements for properties at full market value will suck you dry of cash...or make it impossible to buy.

Hope this helps some.  Good luck!