How did you finance this deal?

Owner Financing is a great way to break into smaller multi-family 4-10 units when a seller is willing to carry the mortgage for you up to a few years until you can qualify for a commercial / DSCR loan to refinance them out. 

The pull back in these markets is due to a confluence of many factors, but it started with these environmental factors:Low interest rates and easy financing for new projects.Structurally high rent growth on existing inventory.High wage growth and high job growth.Very low vacancy.These factors led to floods of institutional capital coming to these markets to snap up existing multifamily inventory and build new supply to meet demand.For these markets, the last 5 years have been a seemingly never ending party!

Financing the acquisition of Prop 3 is tricky.

Hello,Can anyone refer a commercial lender in the area that finances new construction?

They are typically what investors use for rental properties once they are no longer eligible for conventional financing.

The loan program finances up to 75% LTV and allows for a seller-held 2nd lien for a combined 90%.

Just keep in mind that if you are looking to pursue rent by the room, a lot of these deals will be ineligible for financing.

Prefer to be able to use a new appraisal instead of "Cost" for Financing.

With this $50k I could finance one additional property.