Buying Your First Apartment Complex

Stepping into a 5–8 unit property is a natural next step for investors who want to scale their portfolio without jumping into the full commercial world. The problem is that traditional commercial loans often come with heavy upfront costs, including origination or program fees of 2%–3% of the loan amount, along with short-term structures that force you to refinance every few years. These costs and timelines can slow down growth and tie up capital that could be better used elsewhere.

There is, however, a financing option that allows investors to purchase 5–8 unit properties with a 30-year fixed-rate mortgage and no additional commercial origination or commission fees. This means no paying extra points just because the property has more units, and no balloon payments that push you into a refinance every 3–5 years. You get long-term stability, predictable payments, and the ability to hold the property without worrying about future rate increases or forced exits.

This program is designed for experienced investors and requires a minimum 25% down payment. Qualification is primarily based on the performance of the property itself. As long as the rents support the mortgage—either through positive cash flow or meeting DSCR (Debt Service Coverage Ratio) guidelines—the deal can be approved based on the asset rather than strictly personal income.

For investors focused on building a small multifamily portfolio, this structure offers a major advantage: lower upfront costs, long-term fixed financing, and no recurring refinance cycles. It allows you to focus on what matters most—cash flow, appreciation, and steady portfolio growth—without unnecessary fees or short-term loan pressure.