They have contacted me for a commercial loan.

They have contacted me for a commercial loan.

Your Aircover mileage will vary and others have touched on "correct" coverage already.

Consider using an FHA loan to secure a 1–4 unit property with just 3.5% down and take advantage of tax benefits by living there for at least two years.

Second year distributions rise to 5.27%, third year 7.27%, according to the projections.Those projections may be at risk, for many reasons: the recent huge increase in interest rates -- increasing the cost of loans and decreasing valuations, insurance costs have skyrocketed, real estate taxes are up, labor and material costs for repairs & renovations have increased, etc.On the plus side, the majority of the ODC funds were designed to be high value add projects with plans to increase operating efficiencies, add tenants and raise rents.  

The key would be making sure to talk to a local banker that can do CRE loans for owner occupied properties as not all banks do them.

Investment Info:

Large multi-family (5+ units) buy & hold investment in West Allis.

Purchase price: $294,500

Cash invested: $144,000

This was my first commercial MF and off market deal. My agent ...

We did that for about 3 years until Jeff informed me he'd fallen behind on property taxes, and all of his lenders called the loans due.

you can use a DSCR loan if your DTI is too high for conventional. 

In the case of floating-rate loans, interest rate caps would be a prudent measure to take as well.Multifamily Sector FundamentalsThe underlying fundamentals for the multifamily sector are very strong right now.