I have the following data for possible purchase:

4-plex
Asking price........................$159,000.00
Net Operating Income.............17,059.00

What is the highest %financing I could get with these numbers and still have positive cash flow. Credit score 707.

Obviously, I would like to get in with as little cash down as possible. Any suggestions would be appreciated.

Thanks,

Mark

Hi Mark,

With your credit score, you should have no trouble with a 95% loan.
As to cashflow, I do not have enough info to answer you.
A couple of things to remember. Your time on job, mortgage or rent
history, and whether you plan to live in one of the units & rent the other
3 will all figure into the decision for both you & your potential lender.
If you will be living in it, this will make the interest rates better. However,
it is important to be honest about this.
Based solely on your credit score, you may even qualify to go 90% or 95%
stated income/stated assets - even though the rate is a little higher, the
chances of it closing once you are approved tends to be higher. The reason
is that any time you have fewer papers for an underwriter to pick apart the
better the odds of your loan actually closing.

To know if you will cashflow, we would need to know how much each unit
currently rents for, are they all occupied, are you going to live in one, how
much taxes & insurance are, will you use a management company & if so,
what are their fees, are there any association dues?

Also, remember that when purchasing new rental units, a lender will not typically
allow you to count all of the rents against your expenses due to you not having a track record with that particular property yet.

Hope this helps.