I've been analyzing condos in 92102 and believe I can make a 2B/2BA work with an FHA owner occupied loan just so I can get my feet wet with my first deal and stop wasting my money renting. I believe I can leverage direct family to provide the capital for anything above what I cannot afford in terms of closing costs and unanticipated costs that may arise during my first purchase. My question is how do I involve my family in the deal for an owner occupied purchase? Can it be structured so that they receive benefits from appreciation, etc? I simply want to get things rolling and a condo that makes my housing expense tolerable by renting out the other room seems to be my best option at this point. All input appreciated, thank you!
HI. Be sure to check the condo development has been pre-approved for FHA loans, many are not . Or were in the past but have Expired. You can check at HUD website for condo approvals by zipcode. Alternatively you can buy with conventional financing with 5% down. If you need funds for down payment that can be a gift from family. You would still live there for 12 months and then turn it into a rental. If you need rehab funds that can be added ot the conventional loan called HomeStyle.
@Bryce Baker Get everything written on paper as if it's a legal binding partnership with your family. List out who gets their allocable share of rental income, expense, depreciation, credits and appreciation. Will you sell after 3 years or is this going to be held a long time? Are you going to refinance down the road to pay them off? Consider the important scenario and get in agreement. Good luck!