Living in your own 5+ unit property

San Mateo, CA · Member since 2017 · 15 posts · 5 votes

This could be an extremely novice question, but my wife an I are living in the Bay Area and looking to buy a home. Both of us have wanted to invest in Multi-Family unites and thought this might be a great time to invest, especially if we can live in one of the unites.

This is where my questions is, would we be able to purchase a 5+ unit property on a commercial loan and live on the property? I am not sure if this is enough info, but it is my first question on there!

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Steve Vaughan

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

Yes, you CAN live there, but you won't qualify for an owner-occ residential mortgage like you would if it was 4 units or less.

I like the idea though. Just know you will be dealing with at least a 25% DP, a higher & adjustable rate, shorter term that's callable every 5 years and they will bother you every year to report your finances to them.

Sure you don't wanna buy a quad instead??

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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
8y
Yes, you CAN live there, but you won't qualify for an owner-occ residential mortgage like you would if it was 4 units or less.
I like the idea though. Just know you will be dealing with at least a 25% DP, a higher & adjustable rate, shorter term that's callable every 5 years and they will bother you every year to report your finances to them.
Sure you don't wanna buy a quad instead??
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
8y
I’ve considered doing this. As long as I can get an owner occupied loan and I’m not spending to much of my money down on that I’ll buy 2-4 and live in it.
[email protected]512-888-9122
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Patrice Penda
Investor · Hoboken, NJ · Member since 2016 · 464 posts · 179 votes
8y
I echo what @Steve Vaughan said
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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
8y
Originally posted by @Steve Vaughan:

Yes, you CAN live there, but you won't qualify for an owner-occ residential mortgage like you would if it was 4 units or less.
I like the idea though. Just know you will be dealing with at least a 25% DP, a higher & adjustable rate, shorter term that's callable every 5 years and they will bother you every year to report your finances to them.
Sure you don't wanna buy a quad instead??
Buy a Quad that can become 5-units ;-)
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