Could I take out a large loan and buy multiple properties?

Question

Is it possible to say get a loan for like 100k and buy multiple properties with it?

Is that allowed?

Andrew Postell · Answer

Account Closed that is 100% correct.  Must live in and occupy the property.

Andrew Postell · Answer

Account Closed taking a loan from your 401(k) is totally allowable.  Keep in mind that buying a property with an FHA loan means that you will occupy the property.  FHA = primary home loans ONLY.  But if you are buying your primary home, 3.5% down is the minimum requirement with an FHA loan and lots of investors use FHA to buy 2-4 unit properties and live in one of the units.  Tag me on this forum if you need more clarification or need more questions answered.  Thanks!

Anthony W. · Answer

Account Closed hey how are you? Yes, its possible but there are some factors that go into it. How many units are you looking at? What type of loan are you looking to use? (FHA, VA, Conventional) (FHA you need 3.5% down, VA thats used for people who are serving or have served in the Armed services, and Conventional you need 20% down) Do you have any capital to get started? Lastly, what you is your focus? (Buy and hold, BRRRRing, Fix and Flip?) Feel free to hit me up and ill do my best to assist you. Im new to this also but have been doing alot of research and reading.

Account Closed · Answer

@Anthony Ward that's not possible where I'm currently living, I moved out of my 1st house and am staying with someone. Didnt like my neighborhood anymore...but I still own the home.

I was renting it out to family...but they werent reliable with paying rent even tho I gave them a HUGE discount.

They are leaving and I will be renting to a new tenant...once I find and pick one.

I'm curious about possible future purchases.

Andrew Postell · Answer

Account Closed as mentioned above you will pledge, and sign documentation that you will occupy a property within 60 days of the loan closing and that your intent is to live in that property for 1 year with an FHA loan.  Hope this helps in some way.

Anthony W. · Answer

Account Closed ok, well is it possible to pull equity out of that property? If you can pull money out of the property I would do that as opposed to some type of a conventional loan. At the most you could try hard money but that is expensive and they only lend on short term. You also could do a turn key property where everything is taken care of for you and you just collect.

Anthony W. · Answer

Account Closed if you use the FHA loan or VA you need to look deeper into the actual occupancy but most cases its 1 year. If you don't live there you would have to do a conventional................ but I haven't heard of them checking on you and your actual occupancy. I know you are eager to get into it. Maybe I can suggest house hacking (renting one of your rooms).

Account Closed · Answer

@Andrew Postell ok so I cant do am FHA loan unless I live in the property? That sounds fair...since the downpayment requirements are so low.

Account Closed · Answer

@Anthony Ward not sure how much equity I have in the property is enough to buy another place. I refinanced a few years back.

I was thinking of taking a loan from my 401k...but I dont neccesarily want 2 loan payments...unless 1 is really low and I can still make a profit each month.

Account Closed · Answer

@Andrew Postell how long would I need to occupy a unit?

If I didnt live there I'd have to to a traditional loan?

Could I take out a large loan and buy multiple properties?

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