first time financing

I found an apt complex in my colleges town and I am wondering about what the process is to purchase such a property. 13 units 4 bedrooms each with one renter 100% occupancy since it was built in 2004 the asking price is 1.7MM what kind of down payment should i come up with? is a bank the best route? anyone have some experience in this?

More information is required. What is the sellers motivation for selling ?What is the sellers financial situation? What are the comps on similar properties. A lot of info needs to be added to determine if this is a good deal or not. But just for fun lets assume that it is a good deal. Maybe the seller will take 1.7mm on a purchase money mortgage. If not maybe 5% down will sweeten the deal. Banks want 20%-25% down and 6 months reserves. If you have it your in if you also have a credit score of 720 or higher. What are the rents for each unit?
13units x 1000/mo=13000
1.7mm@7.0%int/30yrs=11,319 ?= o down

13000x.5=6500for debt service (50%rule of thumb)
So far terrible deal unless the rents are higher or price is lower

its student housing each room goes for 300-350 per month. i haven’t heard back from the listing agent yet about the sellers motivation and i have to sign confidentiality agreement to see the financial’s.

if he were motivated enough i came up with an idea of assuming the loan paying the seller 5% net annually until i sell the property at which case i would pay the original seller the difference of his asking price and the loan i assumed (ie if the mortgage is for 1MM and asking price is 1.7MM the difference of 700k 20 years down the road) as my first deal i want to learn as much as i can still be successful and yet not miss out on this deal.

Sounds like a lot of money to take on for a first deal. Wouldn’t you rather start with something smaller to see if you can handle everything? How do you think lenders are going to react to this being your first deal at this amount?

thats a valid point i just figured it would be a transfer of ownership since the occupancy is so high and consistant just a different name paying the bills?

If that type of investment interests you and you’re in a college town, what about picking up a nice 3 or 4 br house and do the same thing on a smaller scale? If you find you don’t like the whole LL thing (or if you have problems), at least you could unload that a lot faster than a 1.7MM property. Your pool of potential buyers would be much bigger for the house.
I don’t know your financial situation, but unless you have substantial cash/assets - I think you’d have a hard time getting that complex for your first deal.

at the bottom of the confidentiallity agreement it has a place to fill in the amount the buyer is able to invest before financing etc…should i fill that in or is it not privy to the CA?