Using fiancé FHA the next year
I was interested in what you all thought about this idea. I currently have an FHA loan on my duplex which I purchased in June. I will be making my next purchase in March for another MF but got me thinking that my fiancé could use her FHA loan to purchase a 4 family by next June or later. This we can get an extra place for only 5% down. As long as we cash flow appropriately would this action work out or are there major objections? Would like to hear from he BP community!
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With 2 FHA loans at 3.5% you are highly leveraged in your first couple of deals. That's pretty scary stuff to think about. So before you go on to your third make sure you have a pretty hefty reserve amount so that you can afford to do move-out rehabs and pay the mortgage for a couple of months. Aggressively pay down the mortgage so you can stop having to overpay on your mortgages. Once you've freed up that extra cash flow your third property should be a breeze to acquire.