I am wondering how much cash i might need and if anyone can tell me if the numbers sound good. 12 unit deeded seperate asking 568K operating expenses including management approx20K. Working on getting my “1st” multi fully occupied------any thoughts
taylor
How much money you will need depends heavily on your credit as well as rental history of the property. Please provide more information.
Irregardless of your credit, for the type of building you are looking at expect to be required to put down 20% to 40% or more if the NOI is insufficient to meet the lenders Debt Service Requirements.
In addition to your down payment, closing costs & other fees related to the purchase of the property … if you do not have sufficient liquid assets to form a reserve account to cover 6 to 12 months of PITI you are not likely going to qualify with convential lenders.
Hard Money/Private Money commercial lenders may consider the loan but you will still have to put the same amount down, pay higher fees and higher interest rates with shorter terms (60 months or less - balloon payment).