Has anyone here acquired a 4plex, then Lived in One of the Units, Rented out other Three?
Or maybe acquired a 10plex, living in one of the units, and rented out the other Nine?
How did you structure it?
What is the best way to structure that ?
im currently foing this. I have a 4 unit building and rent 3. no structure just personal name on the note. I did four units so I could use FHA and put 3.5% down.
working well so far, 6 mos in.
I currently do that as well. Works out great. No personal living expense plus it cash flows a bit. The only downside is living amongst tenants in an old turn of the century building. Introduce mandatory quiet hours and you'll save yourself a steep learning curve from the beginning.
This is a great strategy to get a good cash-flowing asset for little cash while simultaneously taking advantage of record low interest rates.
For conforming loans where you get the owner occupant advantages it's only for 1-4 units. Any more units than this doesn't have the same advantages because of how the lending works. So a 4-plex is the biggest property you should be considering for this strategy.
Go for it.
Welcome to BP.
It's a great idea to live in one unit and rent 3 units. You might be able get 3.5% FHA financing for it.
Don't ever let the tenants know you are the owner. Always introduce yourself as the property manager. Of course if they research they can find out who the owner is, but I wouldn't offer it.
I've not had many issues - the property is cash flowing. and I'm living for free as well. Im planning on moving out after I hit my year in the property, and then the numbers will greatly improve.
No issues living next to tenants, It helps, as I can keep a closer eye on the property.
jeff did you do fha financing
Oh i see you did
Nice Jeff. Im.going to.do.that.as.wwell
I'm in a 4 unit now.
Just buy the property and manage yo tenants.
It's not hard
All my tenants know I'm the owner
Join the Largest Real Estate Investing Community
Basic membership is free, forever.