Owner Occupied Financing

[Eric Bunratty]

I have a 4-unit property, that I got investment financing on from a major bank: 25% down, 4.75% interest. I have a pretty unique work situation -- I travel and stay in hotels 95% of the year, so I don't need a "permanent address" and wont for the next ~3 years (and I just stay with my parents during down periods while I am not traveling).

So my question is, could I refinance this property into "owner-occupied" financing if I simply list it as my permanent address or do I physically need to occupy a unit (for the 10 days a year when I am home). I'm assuming the bank will need a copy of the tenant list and would want to see one unit totally vacant with my name on it... meaning I would only be able to rent 3 of the 4 units out until a year passes by and then i could start renting all 4 again.

To be blunt about it, I want to qualify for owner-occupied financing on my 4-plex, and rent out all 4 units -- does anyone know if this is possible? And because I travel for work all year, I don't actually need a place to live.

[Tyler Warne]

Could you rent 3 units at market rate and have a roommate in your owner occupied unit. Obviously you would need to be there when in town, but a roommate might check all the boxes. You should consider, however, the cost of the discounted rent for a roommate or a vacant unit prior to analysis en lieu of of investment financing. The investment financing, even with a higher rate, could give you a better return. And a way higher return if you consider the cost of doing something ethically or morally wrong.