It's a widely held belief that you can mitigate this risk by making a purchase while a rate is known and then if rates go up you are locked in, if they go down and you are able to still qualify, refinance to a lower rate.

You do, however, have to pay a lot to prepare tax returns once you have a corporate structure, which can lower returns a lot. 

Lower fee in lieu of more deals?

Hah, more expensive than REI reply.

Looks like the average in the area is $1,700-$1,800.Do not lower your standards. 

Assume $5k per unit and count the exterior as a unit, so a 4 family would be 5 units and assume $25k expense after closing.If you have any questions, let me know, I'd be happy to answer them for you.Good Luck,Derreck

Cash offers lower costs and control but limits diversification and potential returns while financing allows you to scale faster with more properties, but increases complexity and risk.

ThanksEDIT: I am just out side of Asheville in a smaller community. modular isn't the answer for development. value is lower, quality is lower, I'd recommend stick built always it's how 99% of homes are built or block. in North Carolina I'm sure it's stick built 

This type of financing will typically look very different and more like a traditional commercial real estate loan.That means a DSCR calculated based on a full NOI and expense load (so inclusive of vacancy loss estimates, credit loss estimates, repairs and maintenance, utilities, management fees and more – in addition to the property taxes and insurance expense that are the only expenses factored in on traditional residential style DSCR loan financing).Additionally, the DSCR minimums are generally going to be higher (typically up to 1.25x), the loan to value ratios lower (higher down payments) and underwrite more sophisticated (which makes sense considering the size and scope of the property).Many multifamily investors for properties of this size (such as more than 11 units) can syndicate capital and have more sophisticated financial and entity structures – its definitely a different world once you get up here in unit count.In Conclusion – when you are looking to invest in multifamily real estate and finance your investment – make sure you have the unit count in mind before you start shopping – the unit range can have a huge effect on your options.

I’d like to hear how other investors feel about using “subject to” as the advantages of (1) no qualifying, (2) lower interest rates and (3) no financing costs seem like enough to turn a marginal deal into a worthwhile investment.