How do I finance this?

I’d like to buy a multi-unit property that I think is a great deal, and ideally i’d like to sell an existing single family home as well.

Selling this home will get me 70k cash, and refinancing / heloc will only get me 25k.

I’d like the multi-unit to be a rental property, and im not sure the best way to use OPM or other options in this case.

What are some of my options here?


You could use your own money, seller’s money, equity in another property, etc. Gonna need to provide more details to get a more detailed answer.

what details do you need?

Is the single family home an investment property? If yes you could use the 1031 exchange process to sell the SF and roll the proceeds into acquiring the multi-family. Have you approached the owner of the multi-family? Perhaps they have an assumable loan, or a large amount of equity and would consider either 100% owner financing or taking back a purchase money note as your down payment.

Hi 71tr,

Thanks for your reply!!

The single family home was my former primary residence, and is now an investment property.

The owner of the multi-family is bank owned, and i meet with their agent tonight.

I’ll see if I can find information. I’m concerned that my overall Debt / Equity ratio is going to be too high for any additional loans unless I sell the single family. Is this a common problem among investors?

What else am I missing?

You will be able to use 75% of the market rent to qualify for the property. How many units is the multi-family?

The multi-family is 5 units, and similar apartments are renting between 700 and 850 dollars per month.

The multi-family is going to be classified as commercial. You will need to speak to a commercial lender or a local bank to get that done.

Will commercial lenders have similar Debt / Equity ratios to qualify for the loans, or are they just backed by that real estate?