New Build, Owner Occupied Multifamily
I've been recently focusing on purchasing a cash flowing 3-4 multifamily property using an FHA owner occupied loan. A lot of the properties I'm seeing, mostly only two flats available, either don't cash flow or require massive renovations. I was wondering about the following:
What are the benefits of building a 3-4 unit property over purchasing an existing building?
What kind of financing options are available through this type of build? Does FHA do multi units? Are interest rates and down payments usually higher for new builds? Do these loans also cover architectural drawings, city permits...etc?
Are the cap rates/ROIs about the same when comparing new builds to existing?
I’ve only done the traditional buy and renovate on a couple single family homes; my knowledge of building from scratch is limited. Any insight would be greatly appreciated.