Multi-Unit Residential
Financing Multi-Unit Residential Properties
Investing in multi-unit residential properties is a powerful way to build long-term wealth, generate consistent rental income, and diversify your real estate portfolio. Whether you’re purchasing a duplex, triplex, fourplex, or a larger apartment building, I am here to help you secure the right financing with competitive rates and tailored solutions.
Multi-unit residential properties are buildings with two or more separate housing units. These properties are popular among investors due to their income potential and long-term appreciation. Multi-unit properties can include:
- Duplexes, triplexes, and fourplexes (2-4 units)
- Apartment buildings (5+ units)
- Mixed-use properties (residential + commercial units)
Why Invest in Multi-Unit Residential Real Estate?
Steady Rental Income: Multi-unit properties offer multiple revenue streams, reducing your financial risk if one unit becomes vacant.
Equity Growth: With consistent rental income and potential property appreciation, your investment can build substantial equity over time.
Tax Benefits: Property investors can often write off expenses such as mortgage interest, maintenance, and property management fees, enhancing your overall return on investment.
Lower Per-Unit Costs: Compared to single-family homes, multi-unit properties often provide a better return on investment due to lower per-unit purchase and maintenance costs
Why Choose Raman?
I help you find the right solutions and simplify the mortgage process. With a team built on a strong foundation of experience and expertise, I am committed to securing the best mortgage to suit your needs. Let us handle the hard work, ensuring a smooth and positive experience for you!
Industry Expertise
With extensive experience in real estate financing, I understand the unique challenges and opportunities of multi-unit investments.
Access to Multiple Lenders
I collaborate with a wide network of banks, credit unions, and private lenders to secure the most competitive rates and terms.
Quick and Easy Process
Every investor has unique goals—I’ll work with you to develop a financing strategy tailored to your specific needs and objectives.
Financing Multi-Unit Residential Properties
Purchasing and financing multi-unit residential properties involves specific requirements and lending criteria. Here’s how I can help:
Mortgage Options:
- 2-4 Units: If you plan to live in one of the units, you may qualify for a residential mortgage with as little as 5-10% down. For purely investment properties, a 20% down payment is typically required.
- 5+ Units: Larger multi-unit properties require a commercial mortgage, which involves more stringent qualification criteria but can offer flexible terms.
Loan-to-Value (LTV) Ratios:
- For residential multi-unit properties (2-4 units), lenders typically allow up to 80% LTV.
- For commercial properties (5+ units), the LTV is usually capped at 75-80%, depending on the property’s income potential and your financial profile.
Debt Service Coverage Ratio (DSCR)
When financing multi-unit residential properties, one of the most critical factors that lenders consider is the Debt Service Coverage Ratio (DSCR). This financial metric determines whether the property’s income is sufficient to cover the mortgage payments and operating expenses. A strong DSCR increases your chances of qualifying for financing and securing better loan terms.
The Debt Service Coverage Ratio measures the relationship between the property’s net operating income (NOI) and its debt obligations. It helps lenders assess whether the property generates enough cash flow to cover the mortgage payments.
