Ratios for Apartment & Multifamily
Lending Decisions
http://www.
karenhanover.
com
Real estate investors experienced in the purchase and renting of single
family rental properties are quite familiar with lenders who look at
credit scores, proof of income,...
More
Ratios for Apartment & Multifamily
Lending Decisions
http://www.
karenhanover.
com
Real estate investors experienced in the purchase and renting of single
family rental properties are quite familiar with lenders who look at
credit scores, proof of income, and also the possible cash flow from the
investment.
But, many don t realize that a mortgage for apartment &
multifamily properties can actually be easier to get.
That s because
the decision of whether to loan and how much to loan is made mostly
on the cash flow of the property.
With cash flow being the major factor
in the lending decision, there are a couple of simple ratios that a buyer
can use to help them to view a potential apartment or multifamily
property purchase in the same way a lender would view its value.
These ratios attempt to assess the value and the risk in a mortgage
based on the cash flow generated by the property.
Here are the basics of these two ratios:
Break-even Ratio for Apartment & Multifamily Mortgage Dec
Less