Updated almost 5 years ago on . Most recent reply
House Hacking a Quadriplex for First Investment Property
Hello all,
I'm looking to invest in a Quadriplex in San Antonio Texas, but before I start my research, I wanted to ask those with more wisdom and knowledge on what the most cost efficient financing is for a first time investor. I definitely want to live in one of the units for at least a year and I don't want to invest in a bad area. My best bet is to find a distressed property in a good area and renovate it. Or is it? If so, would I be able to get a loan in addition to an FHA for renovations? Looking for any tips and suggestions I can find. Thank you!
Most Popular Reply
Hey Garrett!
That's awesome you're looking to start house hacking. Doing renovations has its pros and cons. It looks sexy for sure and you can create some awesome equity. However, it can also turn into a money pit and you could lose many months of rental income. Depends on your experience and comfort level. Buying a place that needs fixing is def not required for house hacking.
As for financing, FHA will be the way to go for OO multi family. Mainly because you can use a 3.5% down payment instead of 15% for conventional. If you want to wrap in the cost of the renovations into the loan, the FHA 203k loan could be useful. You'll want to find an experienced lender for this as they can be tricky to close. Another option is to open a few 0% interest for the first 12-18 months credit cards to finance the renovations. Slightly riskier depending on your budget but it's much more streamlined and you could earn some awesome points!
Best of luck Garrett! Keep us posted