I'm looking at multifamily properties in Ogden right now. My problem is that most of them are 100 years old and don't want to deal with an FHA.
I did find one property that would accept an FHA, it's only 60ish years old and it seems to be in good shape. It just barley meets the 1% rule and the cash flow per unit isn't wonderful.
I'd like to know from an experienced Ogden investor if this is a deal worth considering or if more multifamily properties like this come up frequently with better cash flows that I should wait and look for?
Thanks for your input!
Are you planning to occupy it?
Yes. and FHA seems to give me the best interest rate for the lowest down. I would definitely consider an alternative but this seems like my best option so I want to pursue it and see if I can find anything that would allow me to do it.
You may want to talk to banks and credit unions directly. I have clients that are getting great owner occupant (high LTV, no PMI) from places like Key Bank and Mountain America. They originate these in house, so a mortgage broker won't know them.
Simply going for the 1% rule in Ogden can be a dangerous strategy. There are lots of run-down buildings in marginal neighborhoods that look great on paper, but can be nothing but headaches.
What areas are you looking at? I would need more information on the deal you're looking at to have an opinion. PM me if you like.
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