Looking to buy a multifamily with no down payment?

[Laura Levine]

Hi Everyone,

I'm looking for some advice regarding if it's possible to buy a 2 family without a down payment or a lot of cash in the bank.  We currently own a co-op that we rent out and are living in a 2 family where we rent out half.  We found another 2 family that we would love to move into, but after our major reno on the current place, we don't have money for a down payment.  We would easily be able to cover the mortgage and expenses month to month, but I'm pretty sure that we wouldn't qualify for a traditional mortgage with our current situation.  I'd love feedback on if there are any non-traditional methods for financing this, or if this is just a pipe dream for now.  Here's a breakdown of some of the numbers: 

-We have an income of about $120k without factoring in our rental income which adds another $36k.  We have been renting the co-op for 1.5 years ($500/m profit after expenses) and the 2-family for just shy of a year ($1475/m towards a $2485/m expenses).  

-We don't have enough equity to take a HELOC on the house, and due to some issues with the co-op association, a HELOC on that isn't possible either.

-We have good credit (upper 700's) and are currently at about 33.6% DTI with the two mortgages, student loans, and car loans (including the two rental properties).

-With the new house, we anticipate being able to rent the unit we currently live in for $2000/m (for a profit of $990/m after expenses) and approximately $1800/m anticipated in rent in the new house towards $4212 in monthly expenses.  If you add all the rental income together, we would be responsible for about $912/m of the new mortgage.

Thanks so much!