Real Estate Investor · Alamance County, NC · Member since 2016 · 34 posts · 14 votes
I'm looking to buy a small multi-family where I will be one of the tenants - until the market is better and I can buy a more long term house. I think with a conventional loan I only need to live there for 1 year. What issues should I consider, questions I should (of lender etc), to do this?
@Maribel Manibo - Grandville County and Franklin County are worth keeping on your list. Depending on where you are at in each county, you can get on HWY 56 or 85 and get to Durham in a 45 min or less commute. They may not offer the fastest time to the city, but the price difference for a safe, clean, livable duplex in Durham County and Granville County may make it worth the commute.
Every time I purchase a property, I usually shop a minimum of 3 lenders, and for some deals I have talked to over a dozen. Every single bank offers slightly different products. You don't have to waste time submitting the stacks of documents to learn about their products. If you tell them the assumptions to make (income, credit score) then they should be able to tell you what they can do for someone in that position.
I try to get the following info from every bank, then pick my place to apply.
- Loan to Value
- Interest rate
- Term
- Is there a prepayment penalty?
- how much is the origination fee?
- How much does it cost to buy down the rate?
Best of luck as you work to line up your house hack! If there is anything I can do to help, feel free to give me a shout.
Although I don't know all of these counties with great detail, I'm guessing the hardest part will be finding a multifamily home. In my experience these tend to be the most desirable properties for the exact reason you want one. When they do hit the market they are often bought very quickly by seasoned investors who can offer all cash and wave contingencies.
I don't want to discourage you though! Definitely look for one, and if you get one that's awesome! If you can't find one maybe you can buy a house with lots of rooms and rent the ones out you're not using. Maybe you can find a house with a basement or attic that can be converted to an apartment. Maybe you can buy a house on a few acres and you let people park their mobile homes there, or you can buy and place your own mobile homes on your property.