When financing a multifamily property, it is important to avoid common mistakes. Some of the most common mistakes include:
Not having enough cash on hand for a down payment.
Not having a clear understanding of the loan terms.
Not having a clear understanding of the loan repayment schedule.
Not having a clear understanding of the loan interest rate.
Not having a clear understanding of the loan fees.
Not having a clear understanding of the loan closing costs.
Not having a clear understanding of the loan pre-payment penalties.
It is important to do your research and understand the loan terms before signing any documents. You should also make sure that you have enough cash on hand for a down payment and that you understand the loan repayment schedule. Additionally, you should understand the loan interest rate, fees, closing costs, and pre-payment penalties.
Source: The Most Common Ways to Finance a Multifamily Property