Investor · Ashland, OR · Member since 2018 · 202 posts · 38 votes
Does the number of tax dependents have to increase? What if you don't claim some of them but they're still your legal dependents?
What if your kids just get bigger and you need an extra bedroom so that they don't share a room anymore? Would this count? What about adding a live-in nanny or au pair to the household who needs their own bedroom?
If any of the above count, is it possible to get another multi-family property, where at least one unit has more bedrooms than your previous multi-family apartment? Such as, let's say you have an FHA fourplex where each unit is 2 bedrooms. You want to get another fourplex where at least one unit has 3 bedrooms.
Does the number of tax dependents have to increase? What if you don't claim some of them but they're still your legal dependents?
What if your kids just get bigger and you need an extra bedroom so that they don't share a room anymore? Would this count? What about adding a live-in nanny or au pair to the household who needs their own bedroom?
If any of the above count, is it possible to get another multi-family property, where at least one unit has more bedrooms than your previous multi-family apartment? Such as, let's say you have an FHA fourplex where each unit is 2 bedrooms. You want to get another fourplex where at least one unit has 3 bedrooms.
Possibly but you are going to need to provide satisfactory documentation that they are your dependents, and the easiest way recognized is that they are listed on your tax returns because otherwise, how are you claiming them as dependents?
Also, you will need to prove that you have 25% equity in the other vacating property. An appraisal will be required for that.
Lastly, you need to ensure that you, your real estate agent, if applicable, and your loan officer that is assisting you do the perform the FHA Self-Sufficiency Test for that 3-4 unit properties to ensure that it passes that. In the current high interest rate, it's becoming more difficult for those multi-units to pass that test with using just 3.50% down payment.
Of course, you could ALWAY still make it work by putting more money down and possibly buy down that interest rate to pass that Self-Sufficiency Test. However, for the most part, the attraction for choosing to go with FHA is the appeal of the low 3.50% down payment.