Financing rates expected on a multi family apartment complex?

July 18, 2025

by a searcher from Texas A&M University in Calgary, AB, Canada

Hi, I am contemplating at acquiring a multi-family apartment complex priced at USD 30 million in Texas. This is a 180 unit complex with 1, and 3 bedroom. I want to know what are the current financing rates for such a deal at 20% to 40% down payments. Are there any special considerations or rates if this is only a student housing (shared accommodation)? Thanks in advance Mustafa

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Reply by an investor
in Atlanta, GA, USA

Tough to give a solid answer on rates without knowing more about the deal. They’re all over the place right now and depend on a bunch of factors like your experience, the asset type, location, and how the numbers pencil out. Is this your first multifamily project? Lenders that focus on multifamily usually offer the best terms, but they’ll often want to see some track record. Local or regional banks might be more flexible on that, though the terms may not be as strong. On the student housing side, I’d take a close look at the trends. I read that this year might be the peak in U.S. high school grads, and with international enrollment getting harder to predict, we may be headed into a time with more beds than heads. If you go the student route, I’d definitely stick with a major university to help hedge that risk. Good luck with it!

Reply by a searcher
from Bowling Green State University in Surrey, BC, Canada

Talk to your regional banks near the property. Lots of variability in how lenders view investment properties - ie. use, vacancy buffers, tenant quality, etc. If they like the building, then equity investment tends to be a function of debt service on the prospective leverage. In general, investment properties require fairly high percentage of equity (your ~40%-ish amount) to make the debt service work (~1.15x-1.25x).

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