5 lots - commercial or residential?

2 Replies

I've recently been looking into MFR's with the intention to purchase a 2-4plex and reside in one of the units while collecting rent on the the other units. While searching, I ran across 5 lots with trailers on them. All of the trailers are nearly new on city utilities. The numbers work, but my question is how a loan for this type of bundled deal would work? My reason for an owner-inhabited MFR was so that I could get an FHA loan. Is this still possible if I buy separate lots bundled together? Does it being more than 4 lots matter? Note: This is not a "trailer park". This area typically has a mixture of houses and trailers in most neighborhoods.

This will almost certainly entail a commercial loan or a non-traditional loan product.

Originally posted by @George Nikolakakos :

This will almost certainly entail a commercial loan or a non-traditional loan product.

 Agreed. The loan types that come to mind all fall under non traditional or commercial lending.  The one specific type that comes to mind is cross calatoreization also known as portfolio lending. The amount lent would depend on things such as improvements to the lots (paved roads and such) and the state in which the mfh/trailer are kept.

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