Real Estate News & Current Events
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hemlane-a9392011949df124ea8ee63be2fb270c9423d6cd446ec67af23c96616e618606.png)
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
![Sarah Meade's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2925399/1705790502-avatar-sarahm511.jpg?twic=v1/output=image/cover=128x128&v=2)
Selling my house and buying a multiunit
Looking for advice on selling my home and buying a multiunit. I will potentially live in one of the units. What would the requirements be to buy a multiunit under a new business name and how do I continue to purchase more multiunits in the near future under that same business? I am new to this but I really need to start investing into my future and single family house for us isn't doing it.
![Ashley Durmo's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2915619/1720071492-avatar-ashleyd253.jpg?twic=v1/output=image/crop=1940x1940@0x0/cover=128x128&v=2)
Are you looking to buy the MDU in the Hammon area? I have a great Chicago Relator contact who only works with RE investors - I can put you in touch if you want. You can buy a property as an LLC. Often times pro investors will create separate LLCs for each of the properties they buy to limit the risk.
![Drew Sygit's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/107728/1621417372-avatar-royalroseprops.jpg?twic=v1/output=image/cover=128x128&v=2)
- Property Manager
- Royal Oak, MI
- 4,229
- Votes |
- 7,672
- Posts
You will need 20-25% down and a commercial loan for the rest.
Most lenders will want to lend to an LLC with you personally guaranteeing the loan.
Typically, each MFR would be purchased under its own LLC, for liability purposes.
Each LLC would then also need its own bank accounts for collecting rents and paying expenses.
![BAM Capital logo](https://bpimg.biggerpockets.com/no_overlay/uploads/forum_ads/logo/906/1718818456-forum-ad-logo.jpg?twic=v1/output=image/contain=96x96)
![John Warren's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/313283/1639590327-avatar-jwarrenbroker.jpg?twic=v1/output=image/crop=960x960@0x0/cover=128x128&v=2)
- Real Estate Broker
- 1658 N. Milwaukee Ave Ste B PMP 18969 Chicago, IL 60647
- 4,993
- Votes |
- 5,940
- Posts
@Sarah Meade you definitely don't need to have a business to buy a small multiunit, especially if you plan to use a low-down payment loan. You would need an owner-occupied loan like a conventional 5% down mortgage. You cannot use a business to get one of these loans.
What most people do in your scenario, is they sell the home and purchase a 2-4 unit. If they are able to get it turned around and making money (cash flow positive), they then grab another one using a low-down payment loan. This game lasts for a few years and you can buy a few buildings this way.
This is a really significant strategy, because getting control of even two or three buildings can change the course of your financial future. Over a 20–30-year time horizon, this alone can change your net worth by a million dollars.
-
Real Estate Agent IL (#475.166619)
- Forte Properties, Inc
![Forte Properties, Inc Logo](https://bpimg.biggerpockets.com/no_overlay/uploads/company_profile/avatar/90466/1652894697-company-avatar.jpg?twic=v1/output=image/contain=256x256)