Best Financing Option for first 4 family Property-House Hack

[Matthew Cassidy]

Hey Bigger Pockets Nation,

I'm actively searching to buy a 4-family in the Dallas area

-I have about 30k-50k for a downpayment ready to go

-1st property

-looking at off market deals

-I would be living in one of the units (owner occupied)

-Updating the units: kitchen, bathrooms, and adding in unit laundry 

-Would refinance after a year

For financing purposes should I go through a small bank or a loan officer?  Should I just put 5% down or what would you recommend? Also for those that have done off market deals do you just bring a contract with you when you meet?  Do you put anything special in the contract? OR what would you have done differently? 

Thanks team!

[Michael K Gallagher]

@Matthew Cassidy When I went through my loan process with my duplex I was told that you have to put 20% down on a multi family to get conventional financing, you don't have an option for a 5% or lower down payment as an owner occupant unless its a Single Family. So we ended up going FHA. Now yes it's a higher monthly payment, and yes their will be PMI and the process is a bigger pain in the but, but FHA would let you only put 3.5% down, and would let you keep more cash for reserves and for repairs and improvements. And just my opinion, but especially in these times I'd rather have more cash handy if I can, only if the numbers make sense from a month to month standpoint though.