3% or 25% for Down Payment

[Felix Piper]

My wife and I live in 4-plex that we are hoping to buy. Each unit has a one car garage. My hope is to turn the garages into an ADU or another unit. We have enough to put 25% down and make the investment positive cash flow if we move out, but won't have enough left over to build out the garages. I would rather put less down (since we would be able to buy as a primary residence), say 3 or 5%, then build out the garages. Wondering if anyone had any thoughts or suggestions on this.

[Jaron Walling]

@Felix Piper Getting your ducks in a row is the first thing you need to do. If you're trying to buy a 4-plex from an investor I'd be start asking investor questions. The the down payment is the least of my concern if you have stable income, good credit, low DTI, etc.

What are the numbers on this deal? Will it cash-flow at $_____ purchase price?

How much does a garage conversation cost in your market? Is it legal? Are other local investors using this strategy and what did they pay? 

I'd walk other properties and do more market research before making any big decisions.