Hi BP Community! First post, long time follower (sort of)!
Here's my question... My wife and I are in the process of looking to buy a 2-4 unit MF property in Westchester County, NY. Our intention is to Owner Occupy for the foreseeable future. We would like to Finance the property and potential renovations using FHA 203K. IF the units are fully rented with lease agreements in place, would there be any flexibility to the FHA occupancy requirements? Keep in mind we fully intend to live there, however we must also honor the previous lease agreement.
Has anyone experienced a situation like this?
Is there a potential to draft up an addendum to the occupancy affidavit stating property owner will establish primary residency xx days after expiration of existing lease agreement?
You have 60 days to establish occupancy, though many lenders want to see one vacant unit.
Cash for keys is an option if you're up for it.
This is precisely how I bought my first house, a 4-family in upstate NY. As I recall the residency requirement was for only 2 years following closing, during which time my wife and I lived in one of the 4 apartments. Shortly after the 2 years had passed we were ready to move on, bought a single family, moved out, and rented out old unit.
The only real change occurred in insurance- as the live-in owner of a 2-4 unit I used to have homeowners insurance, but when living off site I had to change that to a landlord policy.
As with anything, check with your lawyer. They will give you a more concrete answer, but that was my experience.