If he’s buying with a mortgage in AZ or FL, he may be able to grab a 5+ unit property that quals for commercial financing at a reasonable price. Whole different ball game since as long as the borrower is credit-worthy, the property is vetted more than the borrower. i.e., as a mortgage broker told me, if the deal makes sense — income less vacancy rate is 1.25x expenses at prevailing mortgage rates, then he’ll find someone to finance the deal.
