Rent out rooms of owner-occupied unit while still living there

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Rent out rooms of owner-occupied unit while still living there

Soheil Zarrin
Member since 2020 · 16 posts · 1 vote

Hi everyone, 

I bought a 4-plex recently and I want to move into one of the units during the next few weeks. I bought it with an owner-occupied FHA loan, therefore, I need to live there for at least one year. It is a 3 bedroom/ 2.5 Bath townhouse and it is absolutely more than what my wife and I need.

Does anyone know, if I can rent out one or two extra rooms that we don't need during the first year?

Is there any legal obligation to be the only resident of the unit?

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  • Howard HerringtonPro Member
    Realtor · Boston, MA · Member since 2014 · 159 posts · 75 votes
    6y

    Soheil, as far as I know you can rent out rooms in your unit but you should consult a local attorney just to cover yourself.

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  • Soheil Zarrin
    OP
    Member since 2020 · 16 posts · 1 vote
    6y

    @Howard Herrington

    Thank you for your response. Definitely, I need to add a good lawyer to my team!

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  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    6y

    @Soheil Zarrin  As long as you/your wife continue to occupy the home as your primary residence, you can rent out the additional rooms.  Here's an article that's worth reading on the subject: https://www.fha.com/fha_article?id=2297

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  • Soheil Zarrin
    OP
    Member since 2020 · 16 posts · 1 vote
    6y

    @Kyle J.

    Thank you for the link. It was helpful. 

    Do you know if it does apply for multi-family properties as well?

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  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    6y
    Originally posted by @Soheil Zarrin:

    @Kyle J.

    Thank you for the link. It was helpful. 

    Do you know if it does apply for multi-family properties as well?

    It would apply to your 4-plex bought with a FHA loan.

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  • Soheil Zarrin
    OP
    Member since 2020 · 16 posts · 1 vote
    6y
    Originally posted by @Kyle J.:

    It would apply to your 4-plex bought with a FHA loan.  

    That's awesome! Thank you for your response.

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