Ormond Beach, FL · Member since 2016 · 22 posts · 5 votes
I'm brand new to the game so all of this is new to me. I'd greatly appreciate any advice.
Currently live in a 3/2 that I am 50% Joint Tenant in Common with a sibling. Getting ready to buy the sibling out by cash out refi and quit claim deed. I'm taking an additional $15k out to rehab the home (new windows, A/C, and a bathroom). My question is... Should I take out an additional $20k for a down payment on a rental property (SFH) or do I rent the house I'm in and go buy another house to live in with an FHA (3.5% dp).
@Michael, on the surface of it, this would be an excellent opportunity to MAXIMIZE your borrowing (at historically very good Rates) at just 3.5% down on your next primary home. There are a lot of threads that talk about "house hacking", where your own residence is just part of the total property. Duplex, Tri-plex, or Quad-plex should all qualify with FHA-Approved Lenders. Just be aware of the "self-sufficiency" guidelines for 3-4 Unit properties.
In one go, you could be living in one unit, with FOUR extra apartments bringing in Rent (including your current home). Welcome to BP. All the best...