Starting out--Mortgage Pre-aproved

[Jean Joseph]

Hi all, I'am looking to start my portfolio with multifamily properties. Good news i got preaproved few days ago. Conventional loan 25% down for an investment property since it would be my first purchase. 10% is my down is my goal. If i acquired a small loan for a condo and then 6 months later get a large loan for a 2-4 doors will that quality me for a 10% down since it would not be my second purchase? Sidenote, l have a good amount saved and credit score over 830 Thanks!!

[Chris Mason]

Originally posted by @Jean Joseph:

Hi all, I'am looking to start my portfolio with multifamily properties. Good news i got preaproved few days ago. Conventional loan 25% down for an investment property since it would be my first purchase. 10% is my down is my goal. If i acquired a small loan for a condo and then 6 months later get a large loan for a 2-4 doors will that quality me for a 10% down since it would not be my second purchase? Sidenote, l have a good amount saved and credit score over 830 Thanks!!

 Hi Jean,

Gonna have to be the wet blanket on this one, sorry.

Assuming you want an interest rate and mortgage terms that'll actually let the real estate cashflow, plan on 25% down for each 2-4 unit investment property. I get stuff in my inbox about "zomg 20% down four unit investment property, call for details!" from end lenders looking for my brokered business, and when I "call for details" the rate is always like 9% on an adjustable with prepayment penalties (meaning a big $$$ penalty if you refi too soon)...

You can make less down happen with less on owner occupied real estate, however. Good luck.