What stops you from living in the basement/attic/garage of an FHA Multi-Family Hack
Hello, this question doesn't behave well with the search algorithms so I was struggling to find the answer.
I believe this would not be allowed but I figured I'd ask. If you are doing an FHA multi-family (duplex) purchase, and you are going to house hack for a year, what stops you from renting BOTH units and then living in the basement? FHA requires you to live there for 1 year, but what qualifies as "living there"?
I ask because I am currently in the closing process of a 2900 square foot duplex in Grosse Pointe, MI (very close to Detroit). Two large units. But during closing I've been noticing more and more that I think someone might have been living down there at one point. There is definitely a bedroom, which has heat, lights, and a sink (no egress unfortunately). Then there is a stand-alone toilet next to the washer and dryer (it's weird, like outhouse style).
So that got my friend and I thinking. Why not rent both units and then fancy-out the basement a bit and just live down there. (Add a shower, or even an egress).
Really it's a two-parter: Does FHA allow it, and does the city allow it. But for now I'm hoping to focus on FHA rules.
Thank you all.