@Yu Liu I was looking at some MF properties two years ago before I settled on smaller multifamilies that I could do residential financing with, but I had a bunch of calls with lenders to understand the offerings. I spoke mostly with the local community banks and a few private lenders, but the community banks were more competitive on pricing. Products were relatively similar across banks. 20-30% down. The longest tenor I saw was 10 years, but more often it was 5-7 years financing, but was amortized over 30 years so you have lower payments but have a big balloon payment at the end of the loan term that you'd need to refinance. Rates were fixed, typically around 2.5% over 10 year treasury and they would like to see DSCR (NOI/Debt) of at least 1.2x. There were also prepayment penalties that started around 2% and stepped down .5% each year. Happy to chat further if helpful.

@Michael Hyun Things may have changed as these conversations were taking place in 2022/early 2023. I ended up going with under 4 units so had cheaper options through credit unions and haven't seriously looked at commercial multifamily since then so it could be with interest rates going up since then lenders may have become more conservative. However, out of the four lenders I spoke with at that time, 3 of them said they could do 1.2x

Congratulations!

I can also recommend RE Cost Seg. I used them in 2023 so this may have changed, but at that time I had reached out to 5 or 6 companies and they came out cheapest and they were very quick.

I could switch the product to an arm, they had a 3/6 at 5.785 with no points or if I wanted to keep it a 30 year fixed, it would only go down to 6.75 with a small amount of credit, so I'm also waiting for the moment.

@Michael Hyun Many thanks! We'll check those out.