FHA LoanDown payment: Just 3.5%More flexible on credit and debt-to-income ratiosYou can use gift funds for the down paymentAllows multi-family (up to 4 units) if you live in one — great if you’re house hacking curiousExample: For a $300K home, you'd need ~$10,500 down (plus some for closing costs, which can sometimes be covered by seller credits or down payment assistance)2.

But… Because you were gifted the property you inherited the giver’s cost basis.

@Nina Diehl  depending on the condition of the grill either dispose of it or you can just gift or token sale it to the tenant renting if you know it works.

DSCR Second Loan or Unsecured LOCDepending on your income and assets, you might qualify for a DSCR second or personal unsecured LOC from a credit union or fintech lender:These can fund the gap without being tied to the purchase propertyMay offer better terms than 8.5% and no origination pointsFast funding and less red tapeExample Hybrid StackLet’s say you negotiate purchase down to $340K:$260K via VA Assumption @ 2.5%$40K seller carry at 5%, interest-only$40K from a HELOC on another propertyTotal cash OOP: ~$0–10K (closing + reserves)You’re in a powerful position as a buyer right now — VA assumptions are rare, and your seller may already be feeling the clock ticking.

So my credit is fucked from old credit cards, but I have the option to pull equity from my owner occupied 2 family to repair it....planning on putting on an addition to current house and converting the garage to a ren...

@Jeremiah Dunakin I think you should drive the car you want, regardless of what people think, old or new (and as long as you can buy it cash).

I stepped in with a cash offer and we closed on the original date in place of the original buyer, but in exchange for a reasonable discount.

I do know there's been a good influx of immigrants who have moved into that particular area though so that may bode well for rent prices over time.I'd just make sure the property is cash flowing with current market rents once you get it renovated/stabilized and I personally wouldn't underwrite above average rent appreciation there.Happy to take a further look at it if you want to PM me.

Do they gift you $40k or make you pay $150k and gift the seller $40k?

3️⃣ Management Model:Ideally I'd furnish the units, rent by the room, month-to-month or flexible leases.Tenants would mostly be airline crew who rotate in/out, but I'd also consider travel nurses or corporate crashpad style if needed.Property would be owner-occupied for FHA loan purposes to start.4️⃣ Cash Flow:Assuming a 4-unit at ~$700K purchase:Traditional rent: ~$6,000/month (mix of 1-3BR units)Rent-by-room / crashpad model: Could bump gross rents to ~$8K–$10K/month if fully optimized.After mortgage, taxes, insurance, and utilities — possibly $2K–$3K/month in cash flow, with higher upside if turnover stays low.5️⃣ How to Get It Done:FHA 3.5% down to start.Conservative underwriting to ensure property works as a traditional rental first.Build out one unit as a crashpad while keeping others as standard rentals to test demand.Use fully furnished, automated systems (code locks, turnover cleaning, etc).Would love advice from:Anyone running crashpads in NJInvestors near EWR or other major airportsLandlords with experience navigating NJ’s DCA rulesCreative legal/operational workaroundsAm I thinking about this correctly?