First Time Investor Trying to get 2 for 1!

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First Time Investor Trying to get 2 for 1!

Amanda RhodesPro Member
Homeowner · Baltimore, MD · Member since 2021 · 1 post · 0 votes

Hi all, 

This is my first post and I'm still relatively new to the BiggerPockets community. Would love advice on my situation:

I have found my first single family home in Baltimore near Patterson Park to house hack. I'm using an FHA loan and I'll be renting out the other rooms to roommates the first year. My offer has been accepted (yay!), we just finished home inspections and outside minor fixes it looks like we can move forward with the process of home apraisal etc. All of this is good, BUT what caught my eye is that I saw a house go on sale literally right next door to the property I'm purchasing. The purchase price is half the price of property I'm buying baisic house descriptions below:

My property: 4 bed/ 3 Bath, 2214 square feet, 1133 square foot lot,  full/complete  rennovated 

Property Next door: 3 bed/ 2 bath, 1890 square feet, No square foot lot,  light renovation 


 In my perfect world I would want to buy both of those properties that way I can live and house hack in one house and rent out the other house completely. 


I want to know if it is possible to do this with an FHA loan. Or if anyone has any strategies of how to make this happen as a first time home buyer/ new investor. All thoughts and feedback are welcome. I'm new and learning this space. I have a few good property managers that I've been introduced to by some investor connections in Baltimore. Definitely trying to see if I can make this work.

Thanks, 

Amanda

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    Your current purchase requires you to "owner occupy" the property. You can't occupy two properties at the same time, so you would have to use a different type of loan to purchase the second home.

    I'm curious: aren't you bothered by the fact the neighboring property is on the market for half the price of what you're paying? It sounds like you seriously overpaid because the houses aren't different enough to justify doubling the price.

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  • Dominic Olguin
    Rental Property Investor · Ca · Member since 2020 · 28 posts · 7 votes
    5y

    depending on how much you have for the down payment you can prolly find a hard money lender to loan you the money for both houses. usually higher interest rate but you can do more things with hard money. with FHA you can only purchase one home.

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  • Joe Norman
    Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    As Nathan pointed out, you'll need a different type of financing for the second purchase since it won't be owner occupied. If you do figure out how to move forward with both purchases  then make sure both lenders are aware and on board with this. Trying to get a second loan could seriously torpedo the underwriting process of your primary residence.

    One other red flag to consider is that the property you have under contract needs "full/complete rennovated" - this may make it a non-starter for an FHA loan since they have strict habitability requirements.

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