So I am currently looking to invest in my first real estate property at the end of this year. I have been planning, saving, and reading as much as I can and I think I know my plan. However, I currently work & reside in LA and have done the math as well as talked to others it does not seem "smart" to invest in property around LA nor southern California for that matter, especially if I want to house hack It ruly have no desire to live within the property I purchase I want to treat it as a business more so than anything else. I lived in AZ for a number of years and know that market very well, and its market is also promising, especially in the location i am looking at. I even have people who would rent it out immediately if I bought a property. My problem lies in that I want to do an FHA loan or possibly 203 K and I know that requires I live in the residence for one year. Is there any way around this without getting a partner or cosigner on the loan in that state? Has anyone bought property outside their state and manged to not live in it with the FHA loan or know of any other loans similar without putting 20% down on the home 7 or living within it .
Im also interested in how to invest in out of state without the conventional 20% down or so. Good topic Grant, hope we can get some help from those experienced investors here..=)
@Grant Hunter McNaugthon When there is non-owner occupied co-borrower, the down payment requirement change.
For Non-Occupying Borrower Transactions, the maximum LTV is 75 percent. The LTV can be increased to a maximum of 96.5 percent if the Borrowers are Family Members, provided the transaction does not involve:
a Family Member selling to a Family Member who will be a non-occupying co-Borrower; or
a transaction on a two- to four-unit Property.