Questions about potential House Hack deal! Need advice soon!
Good evening, Bigger Pockets community!
After reading a number of books and blog posts here, BP has convinced me absolutely that House Hacking is THE option I need to be pursuing as a fledgling would-be investor. Now, I live in Birmingham AL where we have searched for months and the only multifamily options we have found are in very very high crime areas.
It just so happens that my realtor has found a duplex in a very solid up-and-coming neighborhood. Most homes in this neighborhood sell within hours to days, so we don't have long on this one. I have two very specific questions, but I also have zero idea what I'm doing, so I am looking for advice on what to do and what not to do. Below are my first questions, but PLEASE feel free to dialogue if you have advice about this situation.
1. Currently, both units in this duplex are being rented. While that is a great thing, that is also a bad thing. We were planning to move in. If I want to buy a duplex as a House Hack that is fully rented, what are my options? Do I need to wait till lease is up? Can I purchase it with an FHA loan if I'm unable to move into the house at first?
2. My realtor, who admittedly has not dealt much with investments, is under the impression that you cannot use an FHA loan for a rental property. He expects I will need to pay 10-20% down to attain this property (which is more than I have in savings at the moment). Can anyone confirm if an FHA is indeed an option? And any other things I need to know about it? I do have a few "creative finance" options that I might can explore, but I would rather FHA it so I can own it clear.
3. What other pitfalls do I need to really beware of? I'm afraid of paying more than I should, but I literally just saw the listing in the last few minutes and I'm trying to get this ball rolling. We have been outpaced with every house purchase attempt we have made in the past year!
Tonight I'm pulling out those BP books again to see what Scott and Brandon had to say on the subject, but I would really appreciate some insight and discussion.