What financing rates should I expect for a 7 unit multi-family property?
I’m looking to purchase a 7 unit property for ~550k in a major city and gentrifying area.  The rents are around $5,300/month.  What financing rates should I expect given 25%down?
[{"id": "i0mva19", "text": "Your best bet is to talk with a local mortgage broker. They can get you a quote for free. In my market ~4% from local banks. Hope that helps.", "replies": [{"id": "i0nlckn", "text": "I would expect banks to do prime + 1%. Interest rates to rise this year too.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i0mz99c", "text": "Just closed on a 12 flat and got 3.8.", "replies": [{"id": "i0mzrhj", "text": "Nice!  Care to share your lender?", "replies": [{"id": "i0n6bsi", "text": "Try regional banks. Or ask real estate brokers who sell these types of properties who the good local lenders are.", "replies": [], "depth": 3}, {"id": "i0nmgqb", "text": "Wintrust.  I\u2019m in Chicago.", "replies": [{"id": "i0p72ho", "text": "Where are you finding 12 flats in Chicago?", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i0ptfsw", "text": "Damn 3.8 on a commercial?!?! \ud83d\udd25", "replies": [], "depth": 2}], "depth": 1}, {"id": "i0mzt04", "text": "I would speak to local banks and credit unions. I would expect rates around 3.75%-4.50%. The longer the term; usually the higher the rate.", "replies": [], "depth": 1}, {"id": "i0n2yos", "text": "&gt;7 unit property for ~550k in a major city and gentrifying area\n\n7 is a bit of an odd number and your rents work out to $757 per unit which feels low for a major city (maybe early in the gentrification?)... Are these 7 legal units?", "replies": [{"id": "i0n7jv4", "text": "They have a certificate of occupancy.  So yes to the legal question.  The low rents are due to the city being relatively a lower cost of living (sun belt).", "replies": [{"id": "i0nbxhi", "text": "Without knowing the details between 3.75% and 4.25% but you better move quick on it. The 5 year treasury is up almost 75 bps in the last 3 months.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i0n3596", "text": "Obviously, your creditworthiness will make a huge difference here given the loan amount.\n\nBased on the extremely limited information you have provided, I\u2019d guess you will be in the 4-4.5% range on a 7 year product with excellent credit and enough cash reserves.\n\nYour local mortgage broker will have much better information for you than randoms on the internet.", "replies": [], "depth": 1}, {"id": "i0n3yi2", "text": "There is a big increase in rates happening in the securitization market and banks will soon follow rates higher. Base rates are around 5.5%. Make sure your rate is locked or know very well what part of the rate will vary before closing. Some places may quote spread plus treasury rate.", "replies": [], "depth": 1}, {"id": "i0n7s1c", "text": "Ask a mortgage broker", "replies": [], "depth": 1}, {"id": "i0nanw4", "text": "Depends on dscr", "replies": [], "depth": 1}, {"id": "i0ne4nh", "text": "I can get u in touch with a mortgage broker if u are interested", "replies": [], "depth": 1}, {"id": "i0nh5es", "text": "Freddie has some sick deals on 6+ unit MFs.  Look up a lender on their site for y state.", "replies": [{"id": "i0njqoy", "text": "I think they only do &gt;1mln in property value", "replies": [], "depth": 2}], "depth": 1}, {"id": "i0njuhj", "text": "You can get a quote directly from W&amp;D without talking to anyone, if you want to kick tires:\nhttps://www.walkerdunlop.com/funding-your-vision/financing-options/multifamily-small-loans/request-quote/", "replies": [], "depth": 1}, {"id": "i0nk7kk", "text": "Jesus fuck, up here I was offered a triplex *at a discount* for $1.5 million. Where you at?", "replies": [], "depth": 1}, {"id": "i0nkk2z", "text": "Since it\u2019s over 4 units it\u2019ll have to be a business loan (versus traditional mortgage), as I\u2019m sure you know. When shopping for my commercial loan, I ended up getting 4.5 - 5% back in 2018. \n\nThat said, the best choice was given by a lender (I won\u2019t plug it here but please let me know if you want the name (even perhaps broker contact if you\u2019re serious)) who was very interested in the project and offered to extend the loan not only for the property itself, but also for the planned capex I had planned (adding 3 units). Keep that in mind, and create relationships / network.\n\nThat said, be prepared to have a business plan, financial projections and your PFS.\n\nPS: let me know if you need a partner on this deal.", "replies": [], "depth": 1}, {"id": "i0nmcmb", "text": "I\u2019m a CRE nationwide direct lender would love to take a look at the deal", "replies": [{"id": "i0oxgty", "text": "Going to get under contract tomorrow.  Will reach out then", "replies": [], "depth": 2}, {"id": "i0pvsxp", "text": "I\u2019m an investor in Eastern Pennsylvania looking for new lending partners. \nI deal primarily with small multi family. Do you have a preferred method of contact so I could send you some info on properties I want to obtain?", "replies": [{"id": "i0tqduu", "text": "I messaged you", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i0pjn09", "text": "What market is this in?", "replies": [], "depth": 1}, {"id": "i0qx58v", "text": "Depends on a few things; location, the cost, your background as a borrower, and the expenses, but I can probably say between 3.5-4% if all of those boxes are checked at certain thresholds.\n\n\\-source: am commercial mortgage broker", "replies": [], "depth": 1}]