Mortgage rates?

[clintboling00]

I was considering buy a home/duplex and renting it out while i am in school. I can come up with a 10-15 % downpayment. But as I was searching I came across a 10 unit apartment building selling for 200k. To me it seems like I would be taking it big on buying my first property...but at the same time I would be adding about 2k extra income every month. Does anyone know what the average monthly mortgage rate is for a 200k with 15% down? Thanks

[C S]

Be warned ... managing a 10-unit building is a full time job. If this is really something you want to do, look into getting a business partner to help you with the endless phone calls and leaks. Or hire a professional manager.I know it seems like an easy way to make money, but it isn't for everyone.

[loancareer]

When you are talking commercial properties, (anything larger that a 4-family is considered commercial,) your talking a whole different ball game. Your loan officer is going to look at several different factors. Here is a simple outline.How much are you going to put down? The minimum may be 20%What is fair-market rent in the area?Take the mortgage payment on the property, add in all expenses, (tax, maintnence, management fees, any utilities you may be responsible for, etc.) This is your expense column.Add all of the rents received. This figure should be at least a 1.2 to 1 ratio compared to the expenses.Last but not least is your credit. Is it good, bad? That's going to have an impact on your rate as well.If all works out ideal you can expect a commercial lender to come back with an offer of 8.75 - 10% 5-year adjustable with a 3-year pre-pay based on a 25-year term.Sounds confusing doesn't it? It is! Don't make a move without an accountant.