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What are the benefits and drawbacks of a Commercial or Residential loan for a multi-family property?

Posted on: 21st Mar, 2011 01:33 pm
I will be purchasing a 12 unit apartment complex that is on 4 parcels with 3 units each. I would like to purchase them under my LLC but could under my own name if necessary. I would like to purchase other multi-famly properties in the future. The property is in Arizona and would need to be a convential mortgage if residential. I have 20% to put down on it.

Should I get 4 residential mortages instead or 1 commercial?

What are the benefits and drawbacks of financing each way?

If i do the 4 separate would it hurt my chances of getting a mortgage to buy a home for myself in the future?
Hi adamtrend!

Welcome to forums!

If you go for 4 separate loans, it might hurt your chances of getting qualified for another mortgage. It will be better if you could go for 1 commercial mortgage. Nevertheless, you can have a word with your lender and he might be able to assist you as to which type of loan will be best suited for you.

Feel free to ask if you've further queries.

Sussane
Posted on: 21st Mar, 2011 08:58 pm
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