Looking to own a Multiplex

[Muskoka Landlord]

HI ....



Can someone tell me what would be the best way to go about figuring out how to own a multiplex with zero or little down?

 

[Thomas Beyer]

0 down implies a highly motivates seller.



Why is he/she (usually a he actually) very motivated:

a) he is very old or sick

b) the property is in bad shape and needs $50,000 for a new roof that the seller doesn't have

c) the property is in a bad part of town with high vacancies (and needs work too)

d) the property has a mortgage that exceeds the property value



Hence: Buy in US warzones .. or in the odd case in a Canadian one from a distressed seller with a garbage property in a bad area. But then you must have loads of cash to fix it up.



Sorry to destroy your hope. It cannot be done in a healthy city with upside.



The best way to buy an older one with 20-30% cash down and fix it up, raise rents .. then re-finance with an 80% mortgage one or 1.5 years later. Then you may get your initial money back.



Or you do JVs with other people's money .. and that usually works only if you have proven yourself over 3 or more projects (I call this a "track record")

 

[Muskoka Landlord]

I own two houses right now which I rent out I am looking to get into a multiplex to take things to the next level the person selling is asking $800,000 for a 3 bedroom 1 bath in a very nice neighborhood the building is a fourplex and looks to be in good shape going from the photos. So what I am asking is what would be the best way to afford to buy and still make money without putting a lot down.

 

[Thomas Beyer]

[quote user=Muskoka Landlord]still make money without putting a lot down.


write an offer .. talk to seller .. see where it goes !



Most banks will not lend you money with little down .. and most sellers will not sell with such terms .. but there is always the odd one !!