How can I finance a Fourplex that I will occupy?

Question

I am wanting to buy a Fourplex in AZ and move into it mid 2019.

The Problem: I do not have 2 years of work history for the last two years.

After doing my own research before coming here, I have discovered I can do owner financing (if that's the case, do you think I could get away with less that 20% down?) Another option I have heard of is using a asset based lender (but would an asset based lender give me a loan for a property that I would occupy?

Furthermore, I just want to know if you guys have any advice or strategy's I can use to make this goal of mine happen. Thank you!!!

Nathan Gesner · Answer

@Matthew Ferguson there are loans available that don't require two years of work history. You've got to meet with some lenders and see what options are available.

Owner financing is a great option and you can definitely do less than 20% down. I just bought six units in June with owner financing. Seller owned for over 30 years, had no loan, and wanted to sell. I asked if he would consider owner financing and explained the benefits to him. He agreed and I bought it for $400,000 with just 10% down and a lower rate than the bank would give me.

Peter M. · Answer

Start contacting banks, credit unions, private investors now to check rates and conditions. An asset based lender could make you a loan as long as the numbers renting the other 3 units still check out but they are probably going to want at least 20% down. Private money may be the way to go on this if owner financing doesn't work out. Do you have a rich uncle? lol good luck

Matthew Ferguson · Answer

Wow, that is amazing! How did you come across that property? Thank you for your response, and this topic just has me so curious, as how do a lot of entrepreneurs or even real estate agents invest in real estate when they are 1099 for the most part? When you get to the point of making at least 100k consistently on a 1099 and being the property fits your budget, do lenders find even a 1099 adequate?

Because theres no way that 1099 people are automatically not able to qualify for conventional financing/FHA...

Thank you @Nathan G.

How can I finance a Fourplex that I will occupy?

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