On owner occupied a conforming loan is still only 20% and many lenders offer products with lower down payment options.

@Mike Young conforming laws prevent "conventional" lenders from originating a loan to an LLC...so, you're out of luck if you use a lender using conforming guidelines to underwrite.

Purchase price: $50,000 Cash invested: $20,000 Contributors: Enis Shehu We acquired a vacant non-conforming lot.

Cannot get the approval to legalize as it requires a variance, and the building had to conform to 3 or 4 family standards meaning it had to have fire escapes and concrete enclosed furnace rooms.

This can be looked up on Freddie Mac’s website; http://www.freddiemac.com/homepossible/eligibility.htmlMay NOT own other residential propertyMI insurance when greater than 80% LTVMax loan amount - conforming limits (super conforming allowed on SFR only) Non- occupying co-borrowers are not allowed with this program

They think it should be from $29,880 to $31,800 in rents.I am approved for a loan from a small local bank on the $160,000 with 20% down (I have in cash) for 6.2% adjustable in 5 years and a 20 year term.I feel good about moving forward at $140,000, a little nervous about $160,000.I am ready to call my agent and make an offer but I just need some conformation that I am not crazy and some butt kicking to move forward with it.

I even found a portfolio lender that will go 5% down on a 2-4 unit since they keep their loans in house they don't have to conform to the Fannie Mae Standards.

The second is the conforming loan limit. 

As such, the appraiser will complete the appraisal as "Legal- non conforming".

It may just be that the seller wants too much and there is no solution but I was hoping investors with more experience than myself in this area could provide some insight into how they would value this and how much of a hit to cash flow would be acceptable in exchange for future potential.The details:4-unit purpose built building in an average residential areaCap rates for 1-4 unit properties range from 6-10% depending on quality, location, conforming vs non-conforming etc.Asking price $520k, dropped from original $550k and has been on market for a few monthsRents are ~$34,000 and should be ~$48,000Expenses (excluding maintenance) are ~$9,000 - This puts the asking price cap rate at ~4.7% (not including maintenance)- We estimate that at asking price it would be about -$260/month in cash flow and break even at a PP of ~$450k assuming our typical 10% of rent for maintenance- We estimate the building would be worth around $530k at market rentsWe were thinking the cash flow neutral price would be our best offer, but their indication was that they are looking for close to 500k.