The simple answer is no.  The bank will not provide any financing leverage to you if you have to use equity for down payment reasons on a different deal.  Now, if you paid cash for a house here and owned it free and clear..THEN went to a bank asking for a mortgage of about 70% Loan To Value, then it's a big maybe.  They would still want you to deposit 2 years worth of debt into their institution.  Furthermore, these are for commercial loans… That is for multi family over 4 units.  They have no interest in lending for office or retail space, only multi family and typically nothing smaller then $500,000. 

In my experience the hot deals never come to market and would never come to this kind of forum or be looking for Off shore investors per se  the agent listing them would already have his buyers lined up. And of course some could be off shore but  most domestic.

Jay: You are correct with the above.  No such properties exist on a forum level with 15% yields.  Utter silliness and irresponsibility in misleading people as to what exists.  No wonder I get calls from foreign nationals asking for 15% Cap Rates in New York City.  I swear they do.  I am not sure whether to laugh, think its a prank call, etc.. Let's face it, NYC is not Florida, but understanding where the market is trading is a commercial brokers first responsibility. 

It's been awhile since I posted, but I check in from time to time.  I had to set the record straight here on this topic. 

Nigel,

I am going to play devils advocate here and go based on what I am seeing as a MF broker myself.  I broker most of my MF in NJ, but do some here and there in FL.  A few questions and comments I have and please correct me if I misunderstood:

1. Foreign national financing at 60% and good rates?  Please point me to those banks.  I work with 3 brokers in NYC who cannot even sniff that.  60% and low rates is practically domestic investor terms.  If you are an investor, and buying out of state MF, banks will give you a hit to the down payment and push you down toward 60% on DOMESTIC investors.  I have not seen anything for foreigners.
2. 17% Return / Cap Rates on assets better then C's?  Where?  In FL, AZ, parts of TX, NJ, NY, the market is trading at about 7.5% for C Class properties on average.  I see SOME getting 10% but not many.  The MF market is very competetive right now.  I don't buy into 17% net returns on MF.  The market simply isn't trading there anywhere. 
3. How do you calculate Cap Rate on MF?  Do you consider vacancies / deductions?  Maintenance?  Common area expenses? 

I'm just a little skeptical of your post.  I am far from a national broker, but I study MF trades in many areas.  I look at the Marcus Millichap and CBRE reports constantly.  Nothing is trading anything close to 17%.  Maybe a needle in a haystack?  But I don't see inventory doing so.  That's crazy.  Institutions would be all over anything trading better then 12%.

Invest in 2 Class 'B' properties, make about 6-8% yield in an area with good upside potential.  Safest thing going right now.  The Class 'C' market has been struggling if you can find honest property managers that can post their 12 month ACTUAL yields instead of their double digit yields on paper.  Over the last month, I have analyzed a C property in Florida, Georgia and Arizona.  The one in Florida, I sold with an estimated yield on pro forma of 12.5% and then stated a "best guess" yield at 10%.  The property yielded 8.7%, and I was personally involved in this, met the tenants, background checks, etc. 

The property in Georgia had a pro forma yield of 16% that actually yielded 4.6%.  The property in Arizona had a pro forma yield of 12% and it yielded less then 3% (maintenance issues and 3 turnovers in 1 year!). 

Class B is where its at. 

Jay:

I'll say this with a grain of salt.  I am originally from NJ and ended up in FL accidentally in 2002 full time after playing a stint in the minor leagues for the Red Sox (why you always hear me pitching about the new stadium

I went to school all my life including all 4.5 years of college in NJ and studied Finance with full intentions on being an M&A guy on Wall Street..  Once my baseball career was finished, I decided to follow a friends lead into the FL real estate arena.  I had very little money at the time but purchased 3 vacant lots in Cape Coral.  In 5 months, tripled my money and became sold that FL was the place for me to be since that was my first real taste of money.  Ok, so I turned 8k into 22k.  Nothing to retire on but in my young 20's, I bought my first bottle of good tequila! 

I learned and climbed quickly in FL.  Hired by a bank in 2005 to run their real estate division, a position I secured by blindly helping a developer affiliated with that bank get very difficult zoning and land entitlements on the Gulf of Mexico in Fort Myers.  A bit of skill and luck went into that but it catapulted me to high ranking positions at a bank who was eventually seized by FDIC.

In 2005 while with the bank I became licensed in NJ.  Launced http://www.NewJerseyRealEstateGuys.com in 2008 and it has quickly grown into a lead-generating animal.  During my time in NJ, I loved it and begged the wife to relocate back.  For one reason and this will hopefully answer your question:

Let me preface by saying that the FL qualifications for teachers is far less difficult then it is in NJ.  I JUST LEARNED THIS as my child entered kindergarten.  For years, I said to myself that business minded people are way more successful and competent up north then they are down south…For the most part at least and dealing with the people I have dealt with.  Florida leads the country in Multi-Level-Marketing.  Why?  Desperation.  What a garbage industry.  You don't see that up north.  Why?  Because its a garbage industry and we just don't buy into that crap up there.  Oh, and Florida also leads the nation in mortgage fraud, to boot.  Why?  Because mortgage fraud is easy and dummies take the short term gain with dealing with possible jail time later.  Yes, happens everywhere but way more in FL.  It's a proven stat.

That said, unlicensed activity practically is non-existent up in NJ.  That is one of the reasons I favor the NJ economics and housing market moreso then anywhere else.  It starts with individual intelligence.  I'm sure there is unlicensed practices everywhere and I've read about them in NJ….But in area where education is less and intellect is less, your bottom feeders thrive into more unsophisticated arenas. 

Jay:  I hate unlicensed activity.  The crappy part is, you deal with it in FL.  In NJ, you either have a license or you don't bring anything to the table.  To Floridians, this is a way of life.  To those up north, it's a slap in the fact to all of the hard earned education and accolades we have earned as a result of our education. 

Still love Florida for what it offers, but we just don't deal with that crap up north.  This I know from tons of experience, not guess and bias.

Ryan,

Where on earth do you make enough to cover all that overhead?  I am part owner of Weichert in Hoboken, NJ.  We are only a franchise, but our Weichert corporate office owned by Jim Weichert himself is barely this big!  Do you do real estate deals in NJ? 

Ahh yes.. Short term memory.  Good luck out there!