Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

My only challenge would be the occupancy rate.

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

In the Midwest you can expect to find 2-3.5% cap rates, appreciation makes up for the rest.

So this may result in a higher interest rate. 

Knowing that market rates are in the high 6s at best, and much higher most likely, I would be looking for at least 6% interest. 

I would also look at the current interest rate and term to see if that's a lever I could use to change the cash flow situation. 

You are probably better off getting a new loan, unless the assumable loan is at a really good interest rate. 

-I am quoted a higher interest rate and more fees since its a rehab loan. 

In case helpful some more info on DSCR loans and how rates and terms are calculated:DSCR loans won't use your income to underwrite the loan.