A few weeks ago I wrote about the pros and cons of investing in multifamily properties. If you missed it, view the article here. For readers looking to get in on the multifamily game, this article provides a few tips and ideas on how to finance your investment in a multifamily property.
The type of financing available will depend, at least in part, on the size of your property. Conventional lenders classify multifamily properties as residential or commercial depending on the number of units. The type of financing available and the requirements to get approved differ between the two types of properties. In general, financing sources for multifamily include all of the sources you have for single-family, as well as others available only for multifamily.
First we’ll look at conventional loan options and then consider less traditional and more creative ways to finance the purchase of a multifamily property.