Multi Family Investment | Mortgage Weekly | Aug 12th, 2017 | Jason Roy | Edmonton Mortgage Broker


Mortgage Weekly time That time of the week again

So a few inquiries this week and and few more over the past couple of weeks So it seems to be maybe it's a trend I don't know maybe it's not a trend maybe it's just the time of the year but people looking to buy multifamily properties so multifamily being more than four units so more than a four-plex so five-plex maybe a small apartment building with eight ten twelve fourteen twenty units so more of a obviously investment strategy than a residential home but the surprising part that I think most people aren't aware of is that yes it's a lot of money usually but you can get in to one of these multifamily properties with as little as fifteen percent down so if you're looking at something with five units eight units 10 units 12 units you know usually that type of investor you're probably in the million to two million dollar range maybe you've had some investment properties in the past some regular residential properties like you know like these houses here or something like that and you decide to cash out on those and you're going to pool your money and you want to buy a small apartment building that you can just kind of consolidate everything and manage one building you can get into it with 5% or sorry 15% down CMHC has a commercial mortgage program for these type of buildings both purchasing and refinancing potentially to 85% value so it's a lot easier still a lot of money down but it's a lot easier to get in then maybe maybe most people think so if you have some rental properties or you just have some cash they're not sure what to do with an investment and you're looking at maybe buying you know one of these houses another house at that apartment or a condo over the next couple of years maybe you're better off to pool that money together and find yourself a small apartment building or a large one if we've got a lot of money our small apartment building and just by whole building they are around the Victoria market there's a few out there that seem to be fairly well priced for for what you're getting and what the potential is out of them Edmonton the values are are pretty reasonable for what you're getting for 10 unit building or something like that so if you're into these larger investments opportunities or you're pooling together with some family to potentially do a larger investment and just manage one property just know that you can do it with as little as 15% down of course the commercial mortgage world is different than the residential world so there's different things to look at cap rates that sort of stuff so cap rates being the amount of income that the property is bringing in divided by the value, the price of the property determines cap rate and the lenders are looking for a certain cap rates in different markets so it's obviously more stuff to look at it's more time consuming for confusing there's more cost but it can be done with 15% down and just like a regular insured mortgage so so if you're interested in that just reach out and I'll give you some more information Interest rates this week have pretty much helped steady nothing nothing too substantial so everything seems pretty pretty low-key from that standpoint anyway have a good weekend I'm off to the west coast so nice two-day drive in front of me but we'll talk next week ciao

Source: Youtube


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AJ

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