buying multifamily with no or little as investment, not primary

[Amit Parekh]

Hey Guys,

My name is Amit and I live in NJ. I started listening to biggerpockets since past month. Before listening to biggerpockets my mind set was investing in houses with 15year mortgage and make no or little return on investment and make money after 15yrs when I retire. So far I own 2 rental properties(1singlefamily,2012 & 1 condo, 2014) and 1 house(2017) where I live. I used all the properties as primary residence when I started and then rented them. I have a full time job and looking forward to invest in multifamily after listening to podcast that how multifamily pays more money on your investment.

I shortlisted the area where I would like to buy multifamily. a typical multifamily with 2 units would cost $200k +$20k repairs; taxes $5500. Each unit can rent for $1300x2=$2600. With 30years mortgage in mind, my monthly mortgage with taxes would be ~$1800(also includes PMI) with $15k down. We are talking $800 of cash flow a month i.e $9600/year and if I think about maintenance cost of $2000 a year its still $7600/year profit. I checked with some banks and found that you need minimum of 25% down as I won't be using any units as my primary residence. Is there any way to buy investment property with no or little down. Getting in a partner is one approach but is there any other way to get it?

Most of the podcast I heard I learned that people use one of the units as primary residence, but here I am looking to rent both. Can someone suggest what would be the best way to approach this situation?

Thanks for the help.

Amit