My name is Fatima Bassett and I am trying to jump into real estate within the next year and I just discovered the owner financing option. However, I not only would like a multi home property but also a multi home property that can be my primary living residence.
My question is are you able to live in one of the units when using the owner finance strategy or would I have to go the FHA loan route?
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2y
You could definitely buy something on owner finance and live in one of the units. That's the beauty of owner finance - the terms are whatever you work out. No bank.
However, it's going to be very tough as a new investor to find an owner finance deal.
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2y
You could definitely buy something on owner finance and live in one of the units. That's the beauty of owner finance - the terms are whatever you work out. No bank.
However, it's going to be very tough as a new investor to find an owner finance deal.
Wholesaler · Estero, FL · Member since 2020 · 52 posts · 20 votes
2y
Definitely possible @Fatima Bassett, sounds like you're interested in House Hacking. You can house hack a duplex (or bigger) and live in one side and rent out the other side(s) to pay some portion of your mortgage. If you find a seller willing to finance the duplex to you, great. Or you could get an FHA loan and put down a small down payment. Why are you looking at owner financing, just curious?
Real Estate Agent · Austin, TX · Member since 2022 · 121 posts · 67 votes
2y
Absolutely, either option will work! They are both unique in their own way and can be done depending on what you are comfortable with spending wise and the opportunities you can find to purchase. As mentioned already, seller financing is a bit more challenging to come by, but can be great for both you and the seller. And FHA can be a bit more affordable if you need to go that route.
I'm glad you are already doing your research and looking into financing, keep it up! The first property is the toughest but once you take the step, you will build momentum, good luck!
Definitely possible @Fatima Bassett, sounds like you're interested in House Hacking. You can house hack a duplex (or bigger) and live in one side and rent out the other side(s) to pay some portion of your mortgage. If you find a seller willing to finance the duplex to you, great. Or you could get an FHA loan and put down a small down payment. Why are you looking at owner financing, just curious?
Hi Jeff! Thanks for your input on this. I am considering owner financing because I wanted to speed up my plan of purchasing my first property in the year 2024 instead of continuing to spend time saving for that down payment with an FHA loan. However, I'm not sure it will be worth doing anymore because I would like a newer building and most of the time with owner financing it seems like the buildings are usually older.
Definitely possible @Fatima Bassett, sounds like you're interested in House Hacking. You can house hack a duplex (or bigger) and live in one side and rent out the other side(s) to pay some portion of your mortgage. If you find a seller willing to finance the duplex to you, great. Or you could get an FHA loan and put down a small down payment. Why are you looking at owner financing, just curious?
Hi Jeff! Thanks for your input on this. I am considering owner financing because I wanted to speed up my plan of purchasing my first property in the year 2024 instead of continuing to spend time saving for that down payment with an FHA loan. However, I'm not sure it will be worth doing anymore because I would like a newer building and most of the time with owner financing it seems like the buildings are usually older.
Yeah, that is likely the case. A newer home is easier to resell, on the market, unless the home seller is distressed in other ways, taxes, bankruptcy, probate/estate, etc but those deals are hard to come by and a lot of people are actively searching them out. Another option could be a lease option, it's a good win-win for the seller and lessor (you). I'd connect with some local investors and ask around if anybody is doing lease options in your area.