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.
Judy
Comments
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.
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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
