Hi guys, I am brand new at real estate investment. I am still just researching as much information as possible at this point. I learned that if I were to use an FHA loan to purchase my first property I am able to purchase a multi-family unit that has up to 4 units. I just finished reading this article by Frank Defazio (http://www.biggerpockets.com/renewsblog/2012/11/08...)
and he states that after a period of time you can move out of the property and rent out of room you were living in to generate a higher cash flow. Is it legal to purchase say a 4-plex and never live in it at all with an FHA loan? My parents have a property with an extra unit that I can stay for free and I don't have any real estate in my name. My address is registered currently to my parents address. There would be no reason for me to move into the 4-plex unless I legally had to, to secure the FHA loan.
Second question, If I do legally have to live there, How long after living there can I move out so that I can generate extra cash flow off of the 4th unit?
Thanks in advance guys!
You do have to live in it for at least one year if you go with the FHA loan.
Thanks @Patrick Donovan !
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