Ready to dip my toes and already discouraged.

[Anthia Rymer]

Hello all, 

I am a newbie to REI; looking to invest in the Upstate NY area. I have been studying multi families for almost 6 months (reading, podcasts etc). I have seen properties online and figured, it's time to get in. So I called for a mortgage and was told that I need to put 25% down and can only be a 4 unit max. Which I already knew... Also, I don't want to house hack, as I live in the City and don't plan on moving any time soon. Here's where my discouragement comes:

1. I don't want to use all of my saving as a down payment;

2. I want to purchase more than 4 units (Go Big or Go Home);

3. Even if I start an LCC; I can't get a commercial loan without being in business for a while (so I think). 

Ideas, thoughts, encouragement is welcomed! 

Thanks!

[Brian Rosher]

You could be able to get a 80% LTV commercial loan. They will care more about the specifics on the deal than how your LLC is setup. It has to have solid returns and financials. 5+ units you'll need to go commercial or private money either way.

If you really don't want to sink your money indefinitely, you need to use the BRRRR strategy which involves getting a fixer upper and making your own equity through repairs.  Then when you refinance at 75% LTV you can pull your initial cash outlay out of the deal.