Best strategy for multiple house hacks

[Jake Gilleland]

Hello! 

My girlfriend and I are graduating college in the spring of 2022 and we are looking to get our first house hack shortly after graduation. We have set a goal of getting 4 properties in the first 4 years after graduation by utilizing low money down options, living in the property for 1 year and moving on to the next. We would like to do this with 2-4 unit properties. My question would be what is the best strategy when it comes to financing? An FHA loan for the first property is the most realistic option for us as its only 3.5% down and we have saved enough for that already. But as far as I know you are only allowed to have one FHA loan at a time. Do I try and buy the first property on my own then she buys the second on her own? or can we use the FHA for the first property and get another low money down option for any following properties? I have seen that I may need 15% down for our second property, is it possible to get a 5% conventional loan on a 2-4 unit? Has anyone else had this experience?

Thanks!

[Mike Moe]

As already mentioned, you'd want to speak with a lender who is familiar with what you are trying to do. @Tim Swierczek is a lender who is well versed with investor strategies like this one! 

On your note around if you should each buy individually, I always recommend this. If you both sign for the loan, it hits both your debt to income ratios for future purchases for the full amount. If you can qualify on your own, there isn't a need to add that to the other's DTI. My wife puts all of our personal stuff just in her name (house, cars, any other major purchases) so my DTI is free for investment purchases!