8 Family house purchase in Brooklyn

commercial loan

Anything over 4 units is considered commercial property by lenders and loan amounts will be determined by the building's debt service ratio. It's not the same thing as with residential property where you can just put 10% or 20% down. You will need the building's income and expense report and most commercial lenders will not lend on vacant properties if you want to get the best rates. Also you will have a hard time finding a 30yr fixed rate if that's what you are looking for. The vast majority of commercial apartment building loans are a 5/5/5/5/5/5 with a 30yr amortization or you can find 7yr or 10yr balloons with either 25 or 30yr amort. Some 15 yr fixed rates are around but it will be difficult to finance a commercial property without a HUGE down payment if you want it to cash flow with a 15yr fixed. Commercial property is all about the cash flow. It's Investment property pure and simple. If the property doesn't generate income it's not a good investment.

-Adam Dahill

WCS LENDING

Depends. You haven't given us enough facts to say.

Are you combining some of the apts? Are you living there? If you go down to 1-4 apts, you can now obtain a residential mtge - and some lenders will work with you by lending to you as an 8-family with the understanding that you will convert down to a 1-4.

Lenders will look at the rent roll to determine what the maximum mortgage payment you can make/month.

adding a similar question to the OP, I would like to get a mortgage on a 3 family investment property in Brooklyn ( currently no mortgage on the house) which banks treat it as a residential mortgage? Was always told that it is an investment property therefore higher rates applied.

aint no 8 family in ft greene for no 1.8

lowballer, agree with nyc10023 - more deets are needed here. If you keep it an 8-family, it is considered a commercial property. You'd have to convert it down to 3-family to get residential tax rates. Your down payment should be at least $360k, but if you have the cash to put more down and get a non-jumbo rate (though admittedly, I haven't looked at the spread in a while), it may be worth it.

Bottoms, what utterly useless blabber. FWIW, there's a 10-family in Brooklyn Heights for $3m.

last i read the OP mentioned an 8 family in FT Greene--apparently you couldn't find such a place, so you provided random info on some other, very different place in a very different neighborhood--i guess it gave you something to do with your empty life, so not a bad thing

there's a 53 family building on the UES for 14.385mm too

Bottoms, I don't have time to pore over every single listing out there, not to mention the fact that there are always places for sale that aren't even listed yet. Your outright dismissal that there "ain't no 8 family in ft greene for no 1.8" is helpful how exactly? And based on what? You essentially accused the OP of lying (a habit of yours, apparently) simply because you don't think such a place could exist. Bizarre.

bjw2103, why do you talk to Wbuttocks? Why do you talk to stevejhx? Why do you talk to columbiacounty? Why do you talk to anyone - you don't seem to get along with anyone.

And how is a 10-family on Joralemon St "very different" from an 8-family in Fort Greene? 2 more apartments? The neighborhood next door? Exaggerate much?

Bottoms, FYI, a simple StreetEasy search and you'll find the place in question. Price has even been lowered. This is the part where you disappear from the thread, right?

First, are you going to be living in the house?

Based on some conversations with banks the last time I looked into buying investment property, if you don't live in the house, regardless of whether it's a 1 or 8-family house, rent rolls matter. You can then only borrow as much as the rents will support.

Assuming that you are not living in the house, and that it's a townhouse with 8 large studios in FG. I'll give you $1000 each for the apts - that's 96k gross per annum for rents, take 20k off for expenses, then allow 10k for vacancies - that's 66k annually. 66k - assume 5% interest rate, that's 1.2mish mtge that you can assume, max.

bjw2103
about 2 hours ago
ignore this person
report abuse Bottoms, I don't have time to pore over every single listing out there, not to mention the fact that there are always places for sale that aren't even listed yet. Your outright dismissal that there "ain't no 8 family in ft greene for no 1.8" is helpful how exactly? And based on what? You essentially accused the OP of lying (a habit of yours, apparently) simply because you don't think such a place could exist. Bizarre.

"based on what exactly"......based on the fact that he is an insufferable asshole.

Bottoms?

Thanks for your responses. I plan to live there and take at least 2 units. Will prob not convert unless it's not a hassle or big legal thing. Assume nyc10023's calculations and factoring in that i'll be living there. What would be the max financing and minimum down payment? Any commercial mtg broker recommendations?

honesey--shouldnt you be out schlepping rentals?? must be slow--at least you can pawn you oliver peoples' and your gucci loafers---funny we arent hearing about your high living much recently? wuttup wit dat??

cc's a bit ramped up??

widebottom, i dont run around showing anyone anything. i have people to do that. mostly pretty young girls. i do spend a fair amount of time on the phone, in restaurants, etc. the end of august is fairly slow, most people who matter arent in the city right now.

"ain't no 8 family in ft. green for no 1.8million"

"whaddup wit dat"

how urbanof you whitebottom. is that because the subject property is in ft. green?

But bottoms, do you still think it doesn't exist?

honesy--stuck in the city with all those who dont matter??
or is it time to conjure up some fantasy that youve jetted off somewhere with a full set of fendi luggage?? you know...another one of your pathetic fantasies that belies how little you know of quality living?? and belies that you are simply a two-bit rental broker loser??

Bottoms, so much anger and so much blabber, yet no answer to the question at hand. Predictable.

fendi? youare showing your age.

and why you are little and grey. like your shriveled ancient useless penis.

"aint no 8 family in ft greene for no 1.8"

Bottoms, you dropped out so quickly, never to return. How come you never came back to defend the claim?

bjw, congrats on being the only person who cares about this thread.

hi huntersburg!

Hello lucille.

anything new?

New with what?

just life

Oh

Thanks hburg!

how is the mrs?

Adam --

What debt service ratio do commercial lenders typically look for? Is there much variation, or does everyone stick to the industry standard, whatever that is?

Do lenders often second guess the actual rents being received or take a haircut for vacancies? Do they adjust for unusual expenses or lack of expenses (e.g., tenants pay heat)?

If you buy the building vacant, will they use the rents the prior owner claims to have received or an estimate from a broker?

while on bklyn res investment props, can anyone provide info on where to research bklyn comm'l properties, res and comm'l/industrail? without engaging a broker??

"while on bklyn res investment props, can anyone provide info on where to research bklyn comm'l properties, res and comm'l/industrail? without engaging a broker??"

Walk the streets. Really. In bstone Bk, there are still sellers who use small, local brokerages that don't advertise on NYT or SE. A small sign in the window, maybe.

Case in point: 107 PPW and Cranberry street Federal (I forget the number).