Should I buy this apartment investment property?

[_CY_]

I will have to ask my brother, but I highly doubt a lender is going to go 5% on an apartment building. I'm sure that would work for a duplex because the risk of depreciation and empty unit rental loss would be less in a two unit duplex when comparing to a 5 unit apartment building.

But the main point in putting 20% down is to avoid the cost of PMI on the loan. That will run you close to 135.00 a month in wasted money every month that could be used to add to an investment portfolio.

Different strokes for different folks.

there is NO way any lender will loan on 5% down on a commercial property. way way too much risk that something will go wrong. it's hard to find a lender to loan 70% loan to value, even you already own apartment property outright. this is one of the reasons why I suggested to OP to past on buying a 5 unit apartment. way too hard to find financing!

just as important .. very hard to find buyers able/willing to put 30% down on a 5 unit apartment, even fewer with 50% down. this is what the lender is thinking and you should be too .. what will happen to note if borrower defaults?

much better to purchase say 7 houses like your brother did .. risk is much lower for investor/lender. it's much easier to find a buyer for a single family house if something goes wrong. this is true for lender and investor. hence why the best tactic is to purchase house as a home owner and keep your hard won capital intact as possible ... keep your powder dry ...