I am looking to finance a 9 unit building and it will cost $185,000.
it will cash flow around $2000 / month as is right now but rents are pretty undervalued! I can easily raise rents $100 - $200 on most units!
Bank said they want at least 25% down. How exactly do I structure this with the bank? Do i tell them upfront that half of the 25% is going to be paid by the seller or what??? I am interested in this scenario. The seller does not want to be the main note holder on this property as they want to cash out!
If I buy this property for $185,000 and bank wants 25% down that is $46250 down. I only want to use $25,000 down of my own money so do i tell the bank that the other $22k is coming from the seller? Does he have to give me this money in cash before close so I can put it into my account to show funds available for down payment to the bank?
Not sure exactly how i should approach this… thanks! -