So im considering using the FHA MFH loan to purchase a quadplex in my county however the numbers might not make sense so im wondering if some other eyes can have a look and say yay or nay
There are presently no "deals" on the market at least from the MLS and the last Quad I saw online was the following
$750k - rented at 4x1500 = $6k (it was in an A class neighbourhood with the best schools in the county and the same quad in a b/c neighbourhood is around 650k renting at 1200 per unit) so for the first 6months and 1 day - 12 months I would in be living for free but would be putting that $1500 a month into a high interest earning emergency fund for when things go wrong and then when I move out the new cash flow would be going in there)
Well below the 1%
now the reason why I would consider it is because as a realtor and hopefully soon to be mortgage lender by the time I wrap in all the commissions and fees out of pocket I will only have about .5% needed for a DP and closing costs so around 15k
So I would be able to get a 6k a month producing asset (probably cash flowing around 800-1200) after PITI for 15k total initial out of pocket (not including initial inspection costs etc)
There are no FHA MFH in my county that fit the 1% rule so advice on this would be great. I am also looking at turnkey investment units out of state and have cash saved up for those as well but it seems a waste not to use the FHA MFH loan if I can
Thoughts on this would be great
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