Owner Occupied Multi-Family Question
4 Replies
Thomas Shaw
from Texas City, Texas
posted over 3 years ago
Hello,
I was considering living in one unit in a 9-unit apartment. Since these are valued based on income, would it be possible to pay myself rent to represent the fact that this apartment should/could be valued at 9 units, rather than having income only coming from 8 units and lowering the value?
Patrice Penda
Investor from Hoboken, NJ
replied over 3 years ago
@Thomas Shaw
The answer to your question is Yes!
Even though you could be occupying one of the units, the valuation of the apartment building is based off the rental income all 9 units would produce.
Seth Borman
Rental Property Investor from Temecula, CA
replied over 3 years ago
If you have investor's and own the building through an LLC then you have to pay rent, or else it is an example of self dealing.
Taoufik K.
from Boston, MA
replied over 3 years ago
Thomas Shaw
from Texas City, Texas
replied over 3 years ago
@Patrice Penda Thank you! That's exactly what I was looking for.
@Seth Borman Good to know. Definitely don't wanna do something illegal/immoral.
@Taoufik K. I'm not quite sure what you mean. Could you clarify a little bit?
Thanks for the responses!