Newbie needs to pick you brain

[TimUnsworth]

Hi everyone

I Just joined Rein this month and am trying to fasttrack my ways through Quickstart. Its so great to finally have a network of people and advice about real estate. Dreams do come true(well they will with solid panning). I have a little experience with buying but my main interest is in multifamily residence. In anycase I have some questions for you

What is the maximum number of suites a building can have and still be considered Primary Residence for the owner?

Could you get a morgage with 10% down if it was your primary residence on a 4 plex?

I`ve read that with a CMHC approved morgage you can get a lower morgage rate. Is this true and if it is, is it worth the extra money to pay for CMHC if you take a 5 year term.

What is a good Revenue to cost ratio (I live in edmonton so the rated are usually lower but the one im looking at is 9.5% being very conserative on price and rents. Is This too low for multifamily residences?

Well I think Thats all, But i`m sure ill think up more. I cant wait untill my first Rein Meeting on Feb 6

Thanks Again
Tim Unsworth

 

[MikeMcCrae]

Hi Tim,

Congratulations on taking the first steps. Lenders will usually allow you to buy a 4 plex as a personal residence as long as you do live in one of the suites. Also some lenders do give better ratse on insured loans but not all. Some lenders will match the insured rate on no insured mortgages. Weather or not to go thru CMHC or another insurer depends on your plan. You would pay a fee for the default insurance but you would free up with more cash for future purchases.

I think 9.5 is cutting it pretty close but again you need to look at the whole picture. A bigger down payment might help with that.