Inherited Tenants, Buying a Duplex with Low Downpayment

[Christopher Redden]

Hello all,

I am still in the process of closing on my first rental. It is a duplex which I will be house hacking, and I am purchasing the property with a 5% down conventional loan. It's not FHA, but apparently there are still occupancy requirements, which state that I must intend to occupy the property, but apparently do not specify a time frame through which I must occupy like an FHA loan would.

So my first question is, has anyone else bought with this type of loan? If so did you occupy and for how long?

Second, both units are currently rented out, so if I do occupy, I will have to remove one obviously. The upstairs unit is rented by an older gentleman who keeps the property in excellent condition, he is neat and tidy and everyone in the neighborhood loves him. That unit rents for 450.

The downstairs unit is rented by a younger guy. He is kind of a partier and is rougher on the property. He does not seem to have the loyalty of folks in the neighborhood. His unit rents for 650.

My mortgage is looking to be about 600 a month. Which tenant should I keep? Does anyone have an opinion on this?

Thanks in advance