Where on Earth Should my Kids Buy an FHA Funded Fourplex ???
Hello I'm a new investor in the Phoenix Suburbs.
I'm binge watching the Bigger Podcast Interviews right now. It might take me while to catch up.
I'd like to help my 2 children get started on a solid foundation once they leave the nest.
It is my belief that they can save up the 3.5% downpayment on an FHA mortgage, within 12 months while still living here at home, after attending trade schools (12 - 18 months) and getting good paying jobs. It is also my belief that the FHA will loan them 96.5% of the purchase price on owner occupied, income producing property upto 4 units and that we can negotiate the closing costs from a motivated seller.
My 21 year old son is between 1 to 2 years out, from moving forward, and my 16 year old daughter is between 3 to 4 years out from executing dad's plan. I will be recommending that they each get their own Fourplex, Triplex or Duplex.
As long as this scenareo actually pays forward this way, I believe that I will have done everything in my power to get my kids started right, besides my wife and I teaching them our values. We're gonna skip the goto an expensive 4 year college and THEN go get a good paying job, then buy a single family house route, if we can.
This FHA mini-multiplex loan program seems like the grow up plan for future multi-family investors.
So now you have the storyline for the future. I'd like your help in forward thinking this.
We live on the westside outskirts of town, but we don't know where, in the Phoenix Metropolitan area, (Hopefully they stay in Arizona) they will find their good paying jobs yet. I don't want them to settle in an area where it's dangerous to go out at night (Especially my daughter) and they probably wouldn't anyway (Especially my daughter). Some parts of Central Phoenix look like they will most likely land, probably closer to Arcadia.
Honestly I kind of like Fountain Hills for location but maybe not for price. The numbers for the deal have to make sense or it's just not gonna happen. But is there a number that makes sense for Owner occupied FHA mini-multiplex deals that regular investors would just say no to ???
I like Win / Win / Win deals.
All of that being said, where on earth should my kids buy an FHA funded fourplex ???
Thanks