How to search for 2-4 units on HUD website

Question

I'm trying to search for 2-4 units on hudhomestore.com, but the website doesn't provide a filter for multifamily. I'm wondering if HUD has 2-4 units at all? If so, how can we search for them?

Ryan Gillette · Answer

You can't search by # of units. What I do is search by bathrooms. Start with 4+, then 3+, then 2+. Usually nothing comes up until 2+ and you'll see a duplex somewhere in the list. In my county, there's only one duplex. The rest are SFR.

I would guess 3-4 units are getting snapped up quicker. It could also be that FHA won't lend today on 3-4 families unless the property can support itself by itself. It's called the self-sufficiency test. For example, I had a borrower foreclose on a 3 family - a loan from pre-2007. His payment on his FHA was $2300 and he was getting $650/unit. While he lived there, it was fine - he could afford to pay the $1000 difference + repairs + vacancy loss, etc. When he moved out, he was instantly losing a minimum $350/month + repairs + maintenance + vacancies/non-payment- so he bailed. Today, that payment would not be able to exceed $1657. Big difference $650/month.

Haiyang A. · Answer

Thanks @Ryan Gillette! The bathroom trick is a good one. I wasn't aware FHA mortgage dictates that  3-4 units need to be self-sufficient. Interesting that they consider duplex differently. Maybe duplex is a good way to start house-hacking.