Can I get an FHA loan for a 5plex?

[Larry Small]

Hello all, 

First post on Bigger Pockets, love the podcasts and just starting to get into the community. I am 20, very interested in real estate as a form of income/tax shelter. I've done some cursory research as I graduate in a year and want to best position myself. 

After graduating in January I will likely move in with my family for 6-9 months and be saving significantly. I would like to put some of that saving towards a downpayment on a multiplex, and given that a 5plex would be considered commercial and not residential, and this is where my interest lays, I think it would be an ideal fit. However, obviously these properties are very expensive. So, I am wondering if it would be possible to get an FHA loan for such a property. I would be in the NJ/NYC area for reference.

Thanks in advance for any help!

Best,

Larry

[Ramon Cuevas]

You're very welcome. House hacking is a very common term used here in BP, basically if you decide to buy a fourplex using FHA financing, you get to live in one of the units to meet the owner occupancy requirements and rent the other 3. Ideally, the rents from these other units should cover all of your expenses and you can maybe live rent free and also cash flow.