Can my plan actually work to buy first fourplex in Las Vegas?

Question

I have done a ton of research, but you can't actually know everything that's out there, which is why I'm coming to you guys! So far I've come up on a dilemma that I can't figure out a way around. I'll mention my goals, then my options, and you guys let me know which is best or a better route. Please and thank you!

Goal: purchase fourplex (Las Vegas, owner-occupied) with FHA or low-income/first time homebuyers program by August 2017

Options: Graduate May 2017 with a comfortable savings for down payment/closing costs and an emergency fund, then obtain (A) full-time or (B) part-time employment to use toward applying for financing

Preferences: no 20% down payment (the lower the better) and I want to purchase property as soon as possible rather than continue to rent an apartment

Dilemma: I want to pursue an MBA through an online program after graduation as well, but worry about workload and how having less income (a part-time job) will affect financing

Christopher Brainard · Answer

Hi @Mecca Walker and welcome to BP.

There isn't anything wrong with the plan overview you have, but its going to be highly dependent on the property you purchase and what financing you can obtain based on your credit worthiness. If you can find a good deal, the rents from the other 3 units could potentially cover the entire mortgage. FHA is a pretty expensive loan though, you'll save on your down payment but PMI can eat up cash flow.

-Christopher

Mecca Walker · Answer

@Christopher Brainard This is why you guys are my go-to people! Thank you so much for that because I didn't consider PMI in relation to cash flow, so I'll have to work with it or around it.