Buying a 4plex, Live in One of the Units, Rent out other Three

[Manuel Angeles]

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 ?

[Jeff F.]

hi 
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.

[Neal Collins]

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.

[William Hochstedler]

@Manuel Angeles

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.

[Account Closed]

Jeff Fruhwirth

@Jeff 

Jeff Fruhwirth

@Jeff F. Is your property cash flowing?  I want to do this as well in Phoenix.  How is it living next to the renters?  Any issues that come up?  

[James Syed]

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.

Good luck!

[Ray Harrell]

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.

[Jeff F.]

Hi @Account Closed 

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.

[Account Closed]

jeff did you do fha financing

[Account Closed]

Oh i see you did

[Account Closed]

Nice Jeff. Im.going to.do.that.as.wwell

[Rosston Smith]

I'm in a 4 unit now.

Just buy the property and manage yo tenants.

It's not hard

[Rosston Smith]

All my tenants know I'm the owner


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