What are the downpayment guidelines when buying a multi-unit investment property?

Question

Is it different from a primary home? I am interested in an apartment building to purchase as an investment. What are the guidelines for downpayments on an investment property. Is it the same as a primary home? I have heard that it is not the 10-20% minimal downpayment because if all/most of your units are occupied, this is taken into consideration. Websites are appreciated too. Thanks for your help.

Answer 1

Yes it different, usually the lender requires 20% down payment and they only take 80% or the rental history into consideration for re-payment of the loan.

Answer 2

give first pay than ?????????

Answer 3

    It'd depend on how much the bank was afraid they'd end up owning it. 20% might do, in good times. If you have good assetts or cash flow to assure them, it'd help.

     Try looking at loopnet,com  - It's a commercial real estate web site, well organised for searching. You could get some idea of what terms are being offered "by owner".

There are some areas where a bank would practically give you a small apartment building- Detroit, for example.

     If you know what else is available, it'll help negotiating with the seller - talk about the other places you are looking at, and excellent terms available. Never act like you want to buy what they're selling. More like " well, this might do, if it's a real good deal"