MIP Effect on Cash Flow

[Joaquin Moreyra]

Hi All!

I am finding that all multifamily properties with cash flow go into the negative when I factor in the MIP expense. I was looking to take advantage of the 3.5% down on an owner-occupied FHA loan; however, the MIP cost seems to be cutting into the profit. Is there a way to avoid this, aside from the 80/20 rule?

Also, are there other non-FHA loan types I can look into which require less money down for properties with 3-4 units.

Thanks!