Loan? would it be possible?

Question

I am intersted in purchasing some apartments. The Price is 355000 for eight units. I have a credit rating of 654. The property is multi zoned commercial and residential. The property is appraised at 455000 (according to seller). For a 15 year loan the payments would be around $3000. The rent at full ocuupancy is 6200. I only have around 10000 for a down payment. Is it possible to get a loan? maybe a SBA secured loan.

Answer 1

most likely not.  You are a subprime borrower (score below 680) with very little down payment ability and you aren't considering the full price of the property.  You will also have property tax, water and garbage (landlords pay those) and you haven't said whether or not the building is fully occupied.  

You'd also have to have money you could put aside each month for improvements to the building and repairs.  Typically called CapEx, or capital expenditures.

You should go talk to an SBA lender, but I don't think you are a good credit risk in this current economy.

Good luck.