Updated over 5 years ago on . Most recent reply
Getting a loan on a Quad
I live in California and am looking to buy my first quad. It is priced at about $500,000 and I cannot get a loan from a bank based on my current income. The property currently rents at about $950 per unit and has room for sweat equity. I am looking to get something as an FHA loan and live in one of the units for at least a year, fix them up, and move out to rent all four units. Does anyone have any guidance for creative financing for a chance to get this deal done.
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Good information from the responders above. Be sure to give that some careful thought.
One things I'd like to add is regarding your expectations of this as an investment. My guess is you do not plan on cash flowing positive, since the monthly rent to purchase price ratio is less than 1%, and you plan to occupy one unit yourself which cuts out 25% of your gross potential rent. What is your goal and exit strategy for this property? It's important to know that because that will definitely impact what method(s) are best to pay for it.