Dear Professor. I am certain I am not wasting my time with my son :-) It used to be very simple to ask others in the industry their Professional Humble opinions to give Buyers some ideas regarding loans. I was looking for a humble opinion guideline. But thanks again. I do have many contacts in the industry since I've been a realtor for quite some time, but thought I'd go this route before bogging down an already busy banker :-) with a bunch of questions from an eager man wanting to begin his future.~~Well, you will never find a formula for a multi-unit property because it's more complicated than that. Calculating a 2 unit is different from a 3 and 4 unit in what is required. If he's not ready to sit with a lender, you are both wasting your time~~
Thanks for the responses. A very ambitious yound soldier ready to become a landlord as well as live there. Following his parents footsteps of investing early. I really just wanted to know if there was a simple formula- Years ago they used to say- What you earn annually, multiply by 3 to get a rough idea for a SF. Just thought there was something like that for multi's. Not ready to sit down with a Lender. He wants to look, and I don't want to have him look at things he will never afford. Stationed in NC, Going to live in MA. so Trying tosimplify.
I can only offer other stories . Once you are modified the lender has now created a loan payment that includes all real estate taxes, Insurance, ( pmi if required) Principle and Interest. If these were not all in the original mortgage amount, they are now... At least that is the explanation I recieved from Bank of America
I have a 1st time home buyer. 3% to put down. Found a 4 family for 350K but I'm not sure he can get a loan for that amount. Current rents are 1k each unit and he make 40K a year. In the Military