Can I house hack Townhouses?

[Ali Clark]

I have a seller who wants to sell four townhouses for $360k. He's not interested in owner financing but i really would like to grab the property. I have house backed but I never looked into if connected townhouses were eligible for an FHA house back. I feel like their independent deeds might give me some issues. Has anyone ever tried this idea?

[Frank Avallone II]

Hi @Ali Clark, I do not think this is possible in this instance. First off, not all townhomes in general are FHA approved so this would be something to look into initially even if considering one.

Definitely would be awesome to pick up all 4 though. Have you considered buying them conventionally? Maybe 1 FHA and then the other 3 through conventional mortgages? 

[Ali Clark]

Quote from @Frank Avallone II:

Hi @Ali Clark, I do not think this is possible in this instance. First off, not all townhomes in general are FHA approved so this would be something to look into initially even if considering one.

Definitely would be awesome to pick up all 4 though. Have you considered buying them conventionally? Maybe 1 FHA and then the other 3 through conventional mortgages? 

I’m a little cash tight in my current renovations but the opportunity is too good to pass up. What do you think a down payment would be on each townhouse if i purchase with conventional loans?

[Sarita Scherpereel]

@Ali Clark You definitely can't use FHA for all four townhouses if they are separate properties. You need to talk to a lender and hard money lender about your DTI, credit, etc. They can tell you which ways would be best for all the things you have going on.

[Kenny Smith]

@Ali Clark

Also, depending on what house hacking strategy you are going to be using, make sure the HOA allows for it. Many HOA's frown upon STR's, have maximum occupancy per unit, etc.

[Eliott Elias]

You won't be able to finance all of them via FHA if they are separated