Great Investment Opportunity

A great investment opportunity that buyers are over-looking are multi-unit homes. Multi-units are considered 1-4 unit buildings. Anything over 4 units is considered a commercial property.  You can purchase these properties using an FHA loan. FHA offers awesome advantages. The first being a 3.5% down payment. The second being, on 3-4 multi-units, you can use projected rental income on the remaining units, you will NOT be occupying. This will be calculated by, “The appraiser’s estimate for fair market rent from all units, including the unit the borrower chooses for occupancy, and minus the greater of the; appraiser’s estimate for vacancies or the vacancy factor used by jurisdictional HOC”. (This is from MRI FHA Standards guideline book, section 603.03, third paragraph). This is a huge help in the qualifying process.

A big fear investors have always had, is what kind of treatment will there property receive from renters. With you living in the same building as your rental units, you will have first-hand knowledge to see how your property is being treated, almost immediately. In some cases, investors receive enough in rent from the other units; to cover their own mortgage…it doesn’t get much better than living for free.

For all potential buyers, I strongly suggest to expand your search to multi-units. It could be the gem you have been looking for.

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