Sometimes an investor's view has more substance than the appetite of an agent who may mentally inflate the value (sub-conciously) because moving the property equates to getting paid.I must admit, whole-heartledly...

Now, if you mortgage broker is finding you products from tier II lenders, then you will get a larger mortgage (though technically you still need to qualify at the BoC 5yr posted rate w/ a 25yr amortization) as they have more appetite for risk ... you will also pay for that appetite 4.5 - 7% If you can produce signed leases and tenant estoppels for the property you are purchasing, most of the banks will count 50% of the rental revenue in addition to your earned income {some use to count up to 70%, but most have pulled back} for qualification.

Kris and CK are talking about private money, which is not available to retail buyers.While 3% sounds low, it is also true that there are people who have different appetites for risk, and there are people that don't even bother to ask the risk/yield question and are just excited to be "investing in real estate".

I would also find out ages on key systems (roof, HVAC, electrical, plumbing, fire alarm & suppression) and estimate initial/short term capital outlay accordingly {If you get to an accepted offer, you'll look at these things in more detail}Are all units separately metered for all utilities?

I'm not sure of the expected loan value however lending appetites for smaller multi-families 5+ are much smaller than larger complexes.

“From a safety-and-soundness perspective, the agencies emphasize that an institution may originate both Qualified Mortgage and non-Qualified Mortgage loans, based on its business strategy and risk appetite,” the regulators said.

The first thing to consider is every investor is different and has different appetite for risks - or might even have other considerations in mind - so no two deals need to be structured the same.

Get a feel for what their lending appetite is and what it will cost you on each side.  

If the store fronts are/were restaurants, check to see if they still have the hoods and air flow evac systems and fire suppressant systems.

Luckily, I have had an overwhelming influx of investors with huge appetites for multi-units in Paterson and Newark NJ.