Real Estate Investor · Hartford, CT · Member since 2011 · 222 posts · 17 votes
Hey Bp,
After receiving advice from many of you on BP, I have finally taken the steps
To becoming pre-approved for a multi-family FHA loan! This has been a long process, but I had to put my head down and push ahead, so I kind of been inactive on the site for a while.
I first and foremost want to thank all of you guys (Jon K, John H, Rich, James, Steve) to name a few. Sorry if I left your name out! You guys gave me all honest, on the money info, and I have finally jumped the first hurdle and now I am pre-approved.
With that being said, I m kind of stuck. Should I purchase a home that I would want to live in? Of course I have to, but I'm only 21 so after a year or how ever long I have to live there to meet the requirements I will do so and them move out. Or should I pick up something up for passive income?
I'm stuck because should I get the home in a great neighborhood that I would "live" in or should I just pick up a rental with the intentions of renting it out, and moving on to the next one? Any suggestions guys on the best path to financial freedom?
Geoffrey, how about a four-plex where you live in one of the units? You would need lo live there at least a year to satisfy FHA requirements. You could do a duplex or tripex, but a four plex has a better chance of covering your expenses.
That is what i have been pondering. thanks for that push. i was deciding on a triplex or a four-plex. I would live in there for a year and then move on to the other property. rine & repeat.
i was informed by the lender that i could take advantage of the 3-2-1 opprotunity that FHA provides to pick up some units. have you ever heard about this situation? what would you advise?
Geoffrey Murphy If you are able to maintain the flexibility, I would look at getting a du, tri, or four-plex and live in one until you can expand. As you get older it gets harder so if you can build your portfolio while you are still young, it will only be easier in the future. To me, always go passive income while you can get away with it.
Nice! This is what I wish I would have done! Just remember the duplex, triplex, etc will need to be in pretty good conditional to appraise for an FHA loan. As stated earlier, you also must live there.. You can find one that satisfies FHA appraisal I'm sure. I would post the numbers up and have your realtor pull rental comps / sale comps and see what happens.
Also you might want to have some cash on hand.. here is why. Going from being 21 to being 21, a new home owner, and a new landlord for 3 other people is a huge step. I'm not saying it can't be done, but you will be responsible for repairs... make sure you've got some kind of emergency fund to float these.
Nice! This is what I wish I would have done! Just remember the duplex, triplex, etc will need to be in pretty good conditional to appraise for an FHA loan. As stated earlier, you also must live there.. You can find one that satisfies FHA appraisal I'm sure. I would post the numbers up and have your realtor pull rental comps / sale comps and see what happens.
Also you might want to have some cash on hand.. here is why. Going from being 21 to being 21, a new home owner, and a new landlord for 3 other people is a huge step. I'm not saying it can't be done, but you will be responsible for repairs... make sure you've got some kind of emergency fund to float these.
Thanks a lot for the potive advice guys!! Danny, Jon, Cullum...
I currently have about 15k saved up right now. I'm doing my absolute best every month to add to this nest egg.
Secondly,@ Danny Day, your absolutely right, being a landlord for three other people can be intense. I know all about it. I currently own a Triplex with another investor 50/50 that I manage, it at times it can be pretty. Rough! Lol
However, I'm excited, and looking forward to picking up some units. Have any of you guys or anyone else ever utilized the 3-2-1 deal through FHA to pick up units???
Way to go Geoffrey! I bought my first home at 21 and I wish I would've gone with a fourplex instead.. This is still my goal to own several sfh and 4plexs. I'm sure you know this but make sure to screen your tenants thoroughly.
Sorry bit off topic but does anyone have any links or suggestions to read up on the FHA 3-2-1. When I search it seems like it wants to pull up 321 vs three two one.
Thanks