Multifamily Decision Dilemma!! Help!

[Jeff A.]

Ok... I've owned an owner occupied conventional 3 fam for almost 2 years and I found a great deal from a friend on another much nicer and larger 3 family in the area. So I'll move from one to the newer multi.

I've hit a wall on what loan to proceed with... please help!

I've called 15 banks and most say my options are generally fha 3.5 down or conventional 20% down.

Best deals i found are:

10/1 arm conventional 5% down at 3.625 rate

Conventional 20% down at 3.625 rate

FHA 3.5% down at a wild 2.8-3 rate

what's the best route to go? Especially if, ideally, I buy another multi in 3-5 years

[Sean McKenna]

@Jeff Angel

Jeff, this all depends on you buddy. You have all the info in front of you.

The rates are all very low. Take that out of the picture.

It mostly comes down to cash reserves and your investing strategy.

Can you do 20% down and still have plenty of cash reserves?

Are you buying this for the long term and with 3.5-5% down will it still cash flow.

Do you need it to cash flow from day 1 or are you in for the long haul appreciation and cash flow after 5 years is cool.

This isn’t a dilemma, just get out of your own head for a hot minute and make a decision. Then stick with it.

You got this.