Hi, I'm new on here and I want to invest in a Multi family house. In Muncie there is a lot of these kinds of houses. I've found some that I'm interested in and I know I'm going to use the FHA route to buy one, I'm just not really sure how to start the process. Do I need to get approved for the loan first then find an agent? I have the paperwork available, I just want everything to be in order to have a smooth process! Please let me know what I need to do..
As far as I know you can go either route- get financing first then agent, or agent first and they can refer you to a broker. I own 2 duplexes. I think in order to qualify for FHA financing you have to live in the property. Is that your plan? If so this is a great way to live mortgage/rent free :) It's what I have been doing and I love it. I prefer multi-family units because of their multiple income streams. Good Luck!
Thank you! Yes I plan on living in one of the units with my twin sister. We are planning to be partners! :p so I'm excited. I was just confused on the steps I needed to take. Thank you again!
Since there are so many wanna-be investors who can't get funding out there, agents and/or buyers will usually consider your offers more seriously if you already have verifiable financing in place.
I worked with a local bank to buy my 4plex, although Wells Fargo bothered me every time I walked into their bank to get the loan through them. I am owner occupied which made this much easier. Also, purchased through my company, not personally. This significantly changed the process and made it very easy to close. Banks are able to give out commercial loans more easily then personal mortgages. I am not sure how financially beneficial it will be in the end but long term I believe this will pay off as I buy more of these properties.
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