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  • November 30, 2009 at 7:25 PM #16735
    34f3f3f
    Participant

    I’ve been looking at investing in 3-4 unit multi-family units, but am unable to find out if these smaller type income properties are being affected by the commercial real estate downturn, or whether they fall inside the residential market. I guess it boils down to state laws and the number of units that qualify for commercial or residential loans. All the reports I’ve read suggest that CRE only peaked in 2007 and has to way to go, so I don’t know whether to wait to start looking now?

    November 30, 2009 at 7:33 PM #488346
    sdrealtor
    Participant

    From what I know 1 to 4 units can be financed like owner occupied and/or residential properties. Once you get above that it changes.

    November 30, 2009 at 7:33 PM #488513
    sdrealtor
    Participant

    From what I know 1 to 4 units can be financed like owner occupied and/or residential properties. Once you get above that it changes.

    November 30, 2009 at 7:33 PM #488895
    sdrealtor
    Participant

    From what I know 1 to 4 units can be financed like owner occupied and/or residential properties. Once you get above that it changes.

    November 30, 2009 at 7:33 PM #488983
    sdrealtor
    Participant

    From what I know 1 to 4 units can be financed like owner occupied and/or residential properties. Once you get above that it changes.

    November 30, 2009 at 7:33 PM #489214
    sdrealtor
    Participant

    From what I know 1 to 4 units can be financed like owner occupied and/or residential properties. Once you get above that it changes.

    November 30, 2009 at 9:31 PM #488416
    HLS
    Participant

    I dont know if there are any state laws regarding this ?
    1 to 4 units is considered “residential”

    FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
    You need 25% down for the best pricing on rental property.

    It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

    Conforming loan limits on 3 units is $645,300.
    On 4 units it is $801,950.

    It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

    November 30, 2009 at 9:31 PM #488582
    HLS
    Participant

    I dont know if there are any state laws regarding this ?
    1 to 4 units is considered “residential”

    FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
    You need 25% down for the best pricing on rental property.

    It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

    Conforming loan limits on 3 units is $645,300.
    On 4 units it is $801,950.

    It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

    November 30, 2009 at 9:31 PM #488965
    HLS
    Participant

    I dont know if there are any state laws regarding this ?
    1 to 4 units is considered “residential”

    FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
    You need 25% down for the best pricing on rental property.

    It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

    Conforming loan limits on 3 units is $645,300.
    On 4 units it is $801,950.

    It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

    November 30, 2009 at 9:31 PM #489053
    HLS
    Participant

    I dont know if there are any state laws regarding this ?
    1 to 4 units is considered “residential”

    FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
    You need 25% down for the best pricing on rental property.

    It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

    Conforming loan limits on 3 units is $645,300.
    On 4 units it is $801,950.

    It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

    November 30, 2009 at 9:31 PM #489284
    HLS
    Participant

    I dont know if there are any state laws regarding this ?
    1 to 4 units is considered “residential”

    FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
    You need 25% down for the best pricing on rental property.

    It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

    Conforming loan limits on 3 units is $645,300.
    On 4 units it is $801,950.

    It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.

    November 30, 2009 at 9:46 PM #488426
    urbanrealtor
    Participant

    [quote=HLS]I dont know if there are any state laws regarding this ?
    1 to 4 units is considered “residential”

    FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
    You need 25% down for the best pricing on rental property.

    It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

    Conforming loan limits on 3 units is $645,300.
    On 4 units it is $801,950.

    It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.[/quote]

    FHA can go as low as like 5% (maybe even 3.5 but I have only seen it as low as 5) for 2-4 units.

    If there are 3 or 4 units then the market rent times the FHA area vacancy factor (which is not the same as the actual vacancy rate) must carry the units.

    For example if the market gross rent (as determined by the appraisal) is 5000 per month (irrespective of the actual rent) and the FHA factor is 10%, then the PITI can’t be more than $4500. I think there is some room for error with regard to the “T” and the “I”.

    November 30, 2009 at 9:46 PM #488592
    urbanrealtor
    Participant

    [quote=HLS]I dont know if there are any state laws regarding this ?
    1 to 4 units is considered “residential”

    FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
    You need 25% down for the best pricing on rental property.

    It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

    Conforming loan limits on 3 units is $645,300.
    On 4 units it is $801,950.

    It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.[/quote]

    FHA can go as low as like 5% (maybe even 3.5 but I have only seen it as low as 5) for 2-4 units.

    If there are 3 or 4 units then the market rent times the FHA area vacancy factor (which is not the same as the actual vacancy rate) must carry the units.

    For example if the market gross rent (as determined by the appraisal) is 5000 per month (irrespective of the actual rent) and the FHA factor is 10%, then the PITI can’t be more than $4500. I think there is some room for error with regard to the “T” and the “I”.

    November 30, 2009 at 9:46 PM #488975
    urbanrealtor
    Participant

    [quote=HLS]I dont know if there are any state laws regarding this ?
    1 to 4 units is considered “residential”

    FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
    You need 25% down for the best pricing on rental property.

    It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

    Conforming loan limits on 3 units is $645,300.
    On 4 units it is $801,950.

    It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.[/quote]

    FHA can go as low as like 5% (maybe even 3.5 but I have only seen it as low as 5) for 2-4 units.

    If there are 3 or 4 units then the market rent times the FHA area vacancy factor (which is not the same as the actual vacancy rate) must carry the units.

    For example if the market gross rent (as determined by the appraisal) is 5000 per month (irrespective of the actual rent) and the FHA factor is 10%, then the PITI can’t be more than $4500. I think there is some room for error with regard to the “T” and the “I”.

    November 30, 2009 at 9:46 PM #489063
    urbanrealtor
    Participant

    [quote=HLS]I dont know if there are any state laws regarding this ?
    1 to 4 units is considered “residential”

    FNMA loans are available nationwide on 1 to 4 unit properties, with 1 unit owner occupied OR as rental property.
    You need 25% down for the best pricing on rental property.

    It is possible to pay up front and get 4.375% 30 YR Fixed, even on rental properties OR you get a higher rate on rental property without paying the pricing hits.

    Conforming loan limits on 3 units is $645,300.
    On 4 units it is $801,950.

    It’s not unusual in may parts of the country to find 4-plexes from $150K-$250K that rent for $1600-$2400 gross rent per month.[/quote]

    FHA can go as low as like 5% (maybe even 3.5 but I have only seen it as low as 5) for 2-4 units.

    If there are 3 or 4 units then the market rent times the FHA area vacancy factor (which is not the same as the actual vacancy rate) must carry the units.

    For example if the market gross rent (as determined by the appraisal) is 5000 per month (irrespective of the actual rent) and the FHA factor is 10%, then the PITI can’t be more than $4500. I think there is some room for error with regard to the “T” and the “I”.

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