5 Plex Creative Ideas

[Caitlin Hall]

Hello, we’ve found a 5 Plex to buy but are running into the commercial loan issue. The units are classified as condos (and seller’s agent is getting us the Legal’s on that), so we are hoping to buy 4 with conventional financing and have the seller owner finance the 5th unit (which the seller has agreed to do). 5th unit is a 2,000sqft house and is unlike the rest of the units which are 800-1300sqft apartments. However, all of the units are connected with one roof. We proposed this to our bank and they are concerned the connected buildings will be an issue when they sell it on the secondary market. I plan to call several more credit unions and banks today, but just looking for some more ideas from the creative minds on here!

P.S. The commercial loan doesn’t kill the deal, it just takes a lot away from the cash flow. The terms would be 5.75 adjustable, 20% down, amortized over 20 years. Our cash flow would go up almost $1,000/month if we can figure out how to do this conventional.