Originally Posted by 2012wagon

I had acouple of questions for anyone that owns a multi unit rental property (4+units).

1)Do you need a commercial GL policy to cover the property?

it can differ by county and local township requirements... in NJ anything more than 3 units is considered commercial...


2)If you are using a RE management company (like I do for my townhome rental property), arethey charging a flat rate/% or due to the number of units is there additionalor per unit charges?

depends on certain mgmt companies and if you want them to also look after the whole property. some just do per unit % cut of the rent... if they will have to maintain the whole property (i.e. lawn service, common areas, etc) they may charge you extra...

3)Forinvestment property purposes, does it still fall in the 25-30% down paymentcategory, or due to multi unit, more dp is required?

usually 30%+ depending on the lender and how many other investments you currently have debt for... if this going under your name or an LLC?

Any otheradvise/info would be helpful, as we are currently in the exploratory processfor a multi unit in AZ, NC or TX.


Thanks