If you won't be occupying a unit and at least one of the units is occupied by a tenant, you will want to purchase a landlord dwelling policy (there are other options besides a landlord policy but I won't get into that here). 

Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option. 

So many better options. 

There are only 2 options for those.

Conventional can be a good starting point for your first properties because of the lower rates, but for entities and if you are planning to scale, DSCRs are great option since they focus on the property’s rental income rather than your personal income.

The land banker, the long term landlord, the neighbor that wants to expand their home, or the horse owning owner occupant with no other options?  

Investors are already on board with the options weve got, just shopping for the best option.

Just learning my options at this point. 

To leverage the equity for financing my next deal, a second mortgage seems like a more cost-effective option.

They have decent rental markets, and there are options where you could get in with a 20% down payment.