Multifamily investing questions

[Hugo Garcia]

Hi everyone,

So I have some questions regarding multi family investments to live rent free while acquiring a fourplex.

I've learned about the FHA loan, but it seems to have a lot of requirements in order for it to work, like working in an industry for 2 years+, etc.

I have a couple of questions regarding this whole subject:

1)  Is there a way to get around all of this just by proving that the investment can pay for itself?

2)  What is another way where an investor would be interested in being part of the deal even though I would be living in one of the fourplexes?

3)  If you get a 5+ property, can you still live in one of the apartments, raise private money and still make the deal profitable?

Thank you

[Ken Breeze]

1) See @James Galla

2) A very close partner, friend, the family member might be your best bet. There are so many risks and questions investors will have who don't know you from Jack, that make it very unlikely for them to throw money into a deal. Who's doing property management and if it's you to make or save some money, how do they know you can handle the investment better than a professional?

3) That depends on your NOI minus debt service which depends on a variety of factors such as market fundamentals, job growth, demographics, what can they pay for rent based on their income and much more.

I, for one, don't invest in areas with a population less than 250K and we're about to raise that number soon. I also look at the Starbucks map to measure the amenities factor and so much more. Study your market before you zero into a property. Invest out of state if you have to. It's not much more difficult than doing it in your own neighborhood. The spreadsheet needs to pencil out in both scenarios.

Hit me up with more questions if you like.

Cheers, Ken