Coming from SFH investing to small &gt;4 unit MFH. What's different?
I have my eyes on a 10 or 13 unit MF.  I'm fairly familiar with the buying process for a SFH.  What's different about the buying process on these commercial deals?  Commercial financing is a given. Are there significant changes as far as due diligence, financing approval, title work?  In my state people use title agents to handle the title insurance, title check and deed paperwork.  Would I still use a title agent or would get an RE attorney to handle it?  Should I still use the same property manager for smaller MFH deals?  I currently use the agent/broker for SFH purchases as my property manager on my rentals.  Should I look for a standalone property management company for a 10/13 unit?  

Financing: Asking price is about $1million for either the 10 or 13 unit.  I'll likely have to raise money as I can only do about $75k from my pocket at the moment.  Anything creative I can do so I wouldn't have to raise more money since this wouldn't be a conventional ageny loan?
[{"id": "e07j9t6", "text": "On the financing piece, here's a quick rundown of things to be aware of for commercial loans: https://blog.stacksource.com/commercial-vs-residential-mortgage-loans-29c9fd1fd39b\n\n$75k would be 7.5% of the equity for a $1 Million purchase price, so you'll need to get at least another 20-25% in equity assuming you want a bank loan. A few ways to do that:\n1. Partner - find a JV equity partner that would come in as another GP. Set up a structure where you do the work and are rewarded for finding and presumably managing the property, but they are bringing a majority of the equity.\n2. Syndicate - rather than bringing in another GP, find a bunch of more passive investors that trust you with their money, and they'll become your LPs.\n3. Seller carry - I'd caution a couple of things here. If there's some amount of seller financing, a local bank/credit union will scrutinize it, and it will likely make it harder for you in underwriting, and decrease the bank's leverage anyway. So you'd need a pretty aggressive seller financing package.\nOne more word on seller financing: don't decrease the purchase price. Make the purchase contract at market price, and the seller financing a piece of the capital stack.", "replies": [], "depth": 1}, {"id": "e07lvxh", "text": "Bank will look more into finances: may have net worth &amp; liquid reserve requirements. \nThe property itself should have net operating income (after ALL expenses, and their estimates may differ from yours) of 1.2-1.25x debt service. \nYou may need to purchase under a single-purpose LLC (that owns just this property). ", "replies": [], "depth": 1}]