Investor · Columbia, SC · Member since 2020 · 18 posts · 3 votes
I'm getting ready to start REI through multifamily house hacking. I'm thinking triplex or 4plex if the price is right. Since I don't have enough saved up capital to buy a fixer upper, what are your thoughts on starting with a turnkey company to acquire the first property. This way I can get started and once my savings grow an little bit I can probably mix up house hacking with BRRRR and grow my portfolio that way. This is my first post on BP, Any tips or directions would be appreciated
Investing in a turn key property is NOT the way to increase equity and capital.
Check with an FHA lender. I believe you can get an FHA loan on a duplex triplex or fourplex provided you live in one of the units.
You can then buy with like 3% down.
FHA has a 203b program where you can roll fix up costs into the loan. I know you can do a 203b for a single family house, you need to check on 2 to 4 unit deal.
I would much rather see you own some units, live in one unit, get owner occupied rates than buy a turn key rental. Plus you will need 20% to 25% to buy turn key rental SFR.
Investor · Columbia, SC · Member since 2020 · 18 posts · 3 votes
5y
@Arn Cenedella that is my starting plan actually is to have an owner occupied fha loan on a multi family to start with. I didn’t know that turnkey properties don’t qualify as such and you need a more traditional down payment. I guess I’ll keep looking until I find a deal that makes sense. Thanks for the answer.
Investor · Columbia, SC · Member since 2020 · 18 posts · 3 votes
5y
@Arn Cenedella that’s along what I’ve been thinking, to do reverse math and see what would make sense for 3/4 rented units accounting for expenses and vacancy. And from there come up with my affordability range and what would make sense as an investment