Updated almost 9 years ago on . Most recent reply
3.5% Down FHA Loan for 3 or 4 family
Hello everyone,
I recently graduated from college and immediately started working my full-time job at a big 4 accounting firm in NYC. Real estate has always been a passion of mine and so I've started saving up for my first property. I plan to use the 3.5% down FHA loan strategy to purchase ideally a 3 or 4 family. The question I pose is: Is this a good strategy for my first investment property, what are the pros and cons in doing so, and how long would I typically be required to live in the residence before being allowed to rent my prior space? If anyone has personal experience using this method, please reach out, I would love to talk more!
Most Popular Reply
FHA requires you to pay PMI (Private mortgage insurance) until you refinance out of the loan. Run your numbers with you moving out of the unit. Where are you currently looking at deals, analyzing your deals?
You also live right next to your tenants, a tip I got from a member was if tenants ask if you are the landlord, let them know you have to check with your "parter" when making decisions.
I think it is a fantastic way to get started, since you get your feet wet with Property management and also have a primary residence