Duplex and AIR BNB with FHA loan ..

Duplex and AIR BNB with FHA loan ..

Member since 2020 · 21 posts · 12 votes

I would like to know if is possible to buy duplex with FHA loan live in one unit and in the other unit make it an Air bnb ?


What is more recommended so I can cover my mortgage and live for free or maybe make some cash flow …

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  • Lender · Winlock, WA · Member since 2020 · 124 posts · 82 votes
    4y

    That is absolutely possible! FHA is a very versatile loan.

    You can get 1-4 unit with FHA with 3.5% down, you will receive credit for rent on your debt to income through either lease agreements if you already have tenants or when the appraiser comes out they will determine market rents. This allows a bit higher purchase power than if you had to rely solely on you income.

    As far as the AirBnB you can definitely use the other unit as an STR if that is your choice. The downside to that is you will want two years of STR Income and reporting it on your Tax return so when you go to Refi or get a HELOC you can count that income.

    Best of Luck!

  • Real Estate Agent · Ft. Lauderdale & Miami, FL · Member since 2015 · 46 posts · 63 votes
    4y

    Hi Danny,

    Yes you can! The FHA loan requires the property to be your Primary Residence - you have to live in the property, which you will and you can purchase a 1-4 unit complex. The airbnb rental would be a great way to pay off your mortgage while you live in the unit next door, as well as manage it much smoother. You can save some money and do the cleaning yourself for guests turn overs and if there are anything that breaks and needs fixing, you are right next door to provide any help the guests might need! That will raise your chances of getting more 5 star reviews, you'll get to become a "Super Host" faster and move up to being the first advertised properties on the airbnb website, consequently, more people will book your place!

    If you need any Airbnb (STR) help and/or a realtor in South Florida you can contact me privately

    Good luck! 

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