multi-unit house hacking

[Curtis Maag]

In Columbus, OH.  Next step in my business plan is house hack, either a 3 unit or 4 unit...ideally finding one that is distressed, buy at a discount and then rehab before moving in.  I was leaning towards a 4 unit, but a GC just told me that 4 unit is considered commercial and therefore requires 2x the time and cost for permits, and the city will scrutinize any rehab much closer than a 3 unit...just overall more expensive per door.   The other thought is if buying a turnkey instead, does a 4 unit make more sense then.  I appreciate your insight!

[Ray Harrell]

I've never heard of a 4 unit being considered commercial, as you can finance a 4 unit with an FHA loan, and they don't do commercial financing. Maybe that's a Columbus thing. A 4 unit hack should get you a profit every month whereas a 3 unit house hack may allow you to break even.