All Forum Posts by: Peter Hamilton

@Andrew Hogan Thank you for your response! From understanding the three main requirements for a large multifamily property is 25-30% down, net worth equal to or greater than the loan amount, and 10% of the loan amount liquid.

You said that I would be able to purchase a 10MM property by myself with 2-3MM down. How would I be able to qualify for a 7-8MM commercial loan if I do not have a 7-8MM net worth? Sorry if this has been answered elsewhere. 

Hello,

I have a single-family home portfolio with a total equity of ~$1million. I also have ~$500k equity in my primary home.

I realize that having that much equity tied up in a handful of properties is not the best approach to maximizing returns. 

What do you guys think is the best strategy to use this equity to jump into multifamily in order to get greater returns? Is it better to buy many separate fourplexes or put all my eggs in one basket and buy a larger apartment complex?

Another factor I have been thinking about is keeping these single family homes for the purpose of net worth requirements for a commercial loans and saving a 25% down over the next 3 years for a ~$1.8-$2 million multifamily property.

I wanted to get your guys thoughts on my situation and thank you in advance for your responses.