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welch
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AFternoon,

I have been reading the board for over a year and improved my credit and savings as a result. My scores on PG are Exp = 717, Equifax = 670 and Trans = 655.

I have a fair amount in saveings and am qualified to purchase a ( 4 plex) multi-unit residential structure through a non-profit assistance group for between $150 amd $200 thousand (I am qualified to the programs max limit of $250 thousand.). However, I am ensureing the unit shows a profit and pays for my mortgage. The question is can I also get financing for 5 condos that are listed at 120,000 in a seperate conventional investment mortgage at the same time which appears to have excellent cash flow as well, with minimal out of pocket, maybe an 80/20, I've been looking and the condos are a great buy and cash flow.

Income over $70,000

Debt Credit Cards $3,900

Student Loans $18,000

No car loans or other debt.

Over $26,000 in cash assets.

Sincerely,

Welch

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Hi Welsh,

There are a lot of things about the mortgage business that do not seem logical, and the limit on units is one of them. Once you go over 4units, it becomes commercial. It is a completely different world, commercial vs residential. I am trying to learn the basic parimeters on commercial, but just so I can pre-qualify people and then pass them on to commercial lenders. Generally 70% LTV is the max you can go, yet generally they will work on appraised value, whereas residential you can probably get a 95% LTV and for sure a 90% LTV on your investment.

One thought on the 4 unit complex you are purchasing. Lenders lend on the basis that the units are only paying rent 75% of the time, so if you make sure that you have at least a break even at 75% income and 100% of PITI, you should do ok at least. I always try to have an exit stratagy, and if you will follow that rule of thumb, you should be able to sell easily enough, should you decide to.

Charles

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