Advice needed on buying a multiplex
Question: I realize that you can always negotiate, and knowing the banks, the more money you have, the better rates you can have (all a matter of perspective regarding interest vs. risk for them). Percentage of interest always depends on the individual’s previous history and assets, one’s knowledge of what is possible, and having friends as bankers never hurt anyone either 
And knowing the Montreal real eastate market, most people probably do pass their multiplex purchases under the residential category (which applies only for 4-plex and smaller) so they can take advantage of the 25% option instead of 35% which is reserved for commercial 4-plexes and smaller and 5-plexes and higher. I’ve even heard of 5-plexes being passed as 4-plexes in order to qualify.
You can always purchase under the residential rule with 25% down, then later re-finance at lesser percentage so you can have remaining capital for further use, but I would not suggest doing so, because of CMHC, and their involvment in the <25% market, which will eat up your money for nothing…
Answer: In the real estate newsgroups I read, a lot of people are looking for ways to buy income property with something like 5% or 10% down, or, in many cases, with no downpayment at all. If I ever had to put down 35%, I would most likely still be renting a small apartment and would have no income property. I don’t know whether you can get the mortgage insurance in his context. Remember that he’s not living there.
In 1981, I bought a triplex and WAS living there. They declined to insure me, so I had to come up with the 25% down, WITHOUT borrowing it. I did it with a “silent second” where my parents gave me 15% of the value of the apartment. During the next three years, I gave them the money back again.
I don’t think that an investor leveraging the hell out of a bubble investment will qualify for CMHC.
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