Introduction to Buying a Six Plus Unit Building
Buying a building that has 6+ renters,this type of building will be considered to be more like a business and will therefore be analyzed like a commercial property rather than a residential property.
To qualify for such an investment, the lender will look at the following:
The property: Revenue vs expenses and the covering ratio,the location, and the condition
You: you have to show that your personal debts and living cost are covered by your personal income
Also this type of purchase will require an appraisal, and environmental assessment; phase 1 for sure (looking at 1,500 to 3,000) and possibly phase 2 which take a longer time to complete and cost quite a bit more.
Because the financial statement of such a property will be more complex than a smaller rental investment, if you are not literate in accounting principles, you may/should hire an accountant to review the statements to ensure that they catch any and every inconsistency.Inconsistencies are to be clarified and the answer is in existent or doesn't make sense then it might be a good time to reconsider purchasing this building.
I would also recommend that you contact meas soon as possible. Reviewing your portfolio and getting all of the documentation ready for such purchases may take you some time so help me to gather as much details as I can from the start then I can guide you in producing the proper documents for submission .
Like all other types of mortgage requests I will need the typical mortgage application to be completed and signed.
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I work with hundreds of real estate investors across the country, therefore I have access to many professionals that have been ‘tried and tested’ which means that I can assist you with building your Power Team.
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