All Forum Posts by: Account Closed

@Samuel W. 40 unit apartment complex is definitely commercial property. It underwrites by the cash flow of the property. You got the required down payment. That should be enough. The bank may look at your house when calculating your net worth, but they shouldn't require your house as a collateral. People creates new LLC for the purchase and your house is not asset of the LLC.

This should be looked as a commercial property, basically you look at the past financials of the property, lease income, repair and maintenance, real estate tax, and insurance, etc, and also the current roll. The current owner should have these records. The best would be in a monthly format, if not, annual P&L sheet should serve as the purpose. After reviewing these numbers, value it as NOI/cap rate.

@John Ferrughelli for 2-4 unit, it is very common to get 80% LTV with commercial loans for purchase. For 5+ unit, generally lenders require 25% down.

@Asa Davis You can look into DSCR loan. No DTI issue, no number of properties limit, only cash flow based. So your STR income can be considered. Although the interest rate is about 1.5-2% higher, as long as the deal is good, the number should still works well.

@Dylan Shea Are you looking for financing to buy the land? Are you open to bridge loan option for land acquisition? 

This should be a question to a title company. I am not sure. @Matthew Lynch

Yes, I think that would work @Matthew Lynch

5+ Unit is considered as commercial property and should get commercial loans. Commercial loans require 20-25% down payment. What your realtor mentioned should be FHA loan. FHA loan for multifamily is up to 4 units.

Commercial loans can certainly be used for single family homes as long as it is non-owner occupied. No w2, tax returns will be looked at. Based on the cash flow and borrower's credit score. 80% LTV for purchase, 75% LTV for refi. Rate starts from mid 4s.

@James LaFarr How big is your loan? What is your deal? For loan amount greater than $1 m and relatively large project (multifamily, commercial property, etc), this is a very strict requirement. If you use commercial loan for single family (package) investment, they probably don't look at it.