Duplex House Investing

[Ryan Murray]

Hello everyone, I come here looking for some advice. I have been thinking about moving to Austin after high school and investing in a multifamily homes through a FHA loan. I was wondering what your experiences are with multi family house investing. Should I look into duplex or something larger? what should I look out for? just any advice in general would help. I'm not looking to do this immediately, but just an option I'm thinking of.

[Evan Hopple]

@Ryan Murray

Start with a duplex, live in one side, and let the tenant cover most of your mortgage. FHA goes up to 4 units so once you have that experience under your belt you can scale up. Just know that 3 and 4 unit properties are subject to the FHA self-sufficiency test, which requires that 75% of the proforma gross rent exceeds the PITI.