Renovate the basement or purchase another multi family

[Dionne Rodriguez]

Hello I live around the Boston area and bought my first triplex with a standard fha loan, it’s been one year with the property so I can move out of it. I was wondering if it made more sense to renovate the basement and turn it into a long term or short term rental. Or just purchase another multi family.I’m trying to stay in my backyard and I’m sticking to the house hacking strategy.

[Lien Vuong]

I would expand the basement and maximize the property so that you can turn it into a cash flow positive asset and refinance it into a conventional loan and then re use the FHA. It is highly unlikely that you'd be able to FHA with an outstanding 3F on your debt sheet right now.