New investors have a wide variety of options available to them when it comes to what kind of property they are going to focus on. In fact, one of the top questions I hear from investors is, “What would you do?”
If I could start my investing life all over again I would buy a FOURPLEX as my first home. And when I say first home I mean first home. Most people buy their single family house, live in it as their primary house, then look to buy their first investment property. For those that are flexible and motivated I suggest you buy a 4 plex as your first primary home and investment property.
The 20 Best Books for Aspiring Real Estate Investors!
Here at BiggerPockets, we believe that self-education is one of the most critical parts of long-term success, in business and in life, of course. This list, compiled by the real estate experts at BiggerPockets, contains 20 of the best books to help you jumpstart your real estate career.
Here is why an owner occupied fourplex makes sense:
- Qualifying for a first time home buyers loan on a primary residence easier.
- You need less money down.
- Rental income helps qualify.
- You now have a primary home and an investment in one transaction.
- Potential cash-flow or you could pay for your primary unit with the other three units cash-flow.
- When you decide to move you have a 4th unit that becomes a rental.
- On site property manager.
Highlights of the loans available on a fourplex (primary residence):
- Up to 80% financing
- Rates start at 5.875% on a 30 year fixed
- Loan amounts to $801,950
- Seller can contribute 6% to closig costs
- Credit scores down to 575
- 2 month asset reserve minimum requirement
This is also a great idea for individuals that have kids that are in need of an idea on how to get started in real estate.
Photo: Matthew Rutledge