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 !
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing