FHA Loan 3.5% down |multifamily|

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I have 8k, I have no idea how to invest in multifamily. But, Im intersted in buying a multifamily with a FHA Loan. But my questions are..

- Do you buy any multifamily? Or is there a math behind it?

- Do you have to fix it?

- Do you have to qualify for a millon dollar property?

- Can you do it with 8k?

Hi Fili, let me answer your questions in order. 

- If you're planning to live in the multi-family, which is what you need to do for a FHA loan, then you should pick a multi-family that you're comfortable living. That being said there are multi-families that are good deals and others that aren't. It's the same with Single Family homes. You should do the math to make sure you know what you're commiting to, and if you're plan is to move out one day and rent out all the apartments then you should do the math on it as if you're not living there so you know it will make a viable investment property if and when you move out. Does that make sense?

- If you're buying a property that needs work then yes you will probably have to fix it up. That being said you could look for a turnkey property or a property that was recently rehabbed which will probably cost more but then there will be less to fix up. 

- You only have to qualify for the loan amount you need and the beauty of buying a multi-family is that you can use the rents to help qualify for the loan. So if you're buying a 3 family with the plans to live in 1 of the units you can use the rents from the other 2 units to boost your loan approval amount. I do this for clients all the time. 

- $8k will be a little tough. You will need to negotiate the seller to pay closing costs, also you need to find out if there are any downpayment assistance programs in the area that you're looking to buy in. In theory $8k downpayment on 3.5% loan can qualify you for ~$230k, the issue is going to be that the Underwriter will want to see about 3 months of carrying costs as reserves in your account after closing, and those funds cannot be gifted. I'd recommend talking to a knowledgeable realtor and/or lender in your area and see if there are programs out there you can leverage. I know of some in MA some cities will give first time home buyers up to $12k for downpayment assistance and only require buyers to put in 1% themselves. If you could find something like that or if you have reserve funds outside of the $8k you mention then you maybe able to do it. 

I hope this helps, goodluck!