[quote=FlyerInHi][quote=HLS]
If you’re open to the idea, look at other parts of the country where $800,000 will buy you an apartment building (10-20 units or more) that can gross $8,000 a month rent (or more)
…..After expenses and management fees you could have a nice return and greater depreciation than an OC townhome.
There are good property managers out there and you wont be involved in the repairs/maint other than making decisions.[/quote]
I agree. But do you think he can quality for loan? Usually 7 years adjustable with balloon payment.[/quote]
Qualifying for commercial property is different than 4 units or less. Many different programs. OP has strong income & good credit. There will always be money available at some rate.
The income from the property carries more weight in qualifying.
It’s also possible to buy units with partners etc.
Many variables, just general advice.
Conventional loans with 30yr fixed rates are available on 1-4 unit properties. Although not common around here, there are many areas that have 2- 4 unit buildings that can be financed separately.
Not a concept for those who want to be hands on landlord.
