Wait to use an FHA or create an LLC and finance through that?

[Katelyn Christiansen]

Hi, all! I'm looking into purchasing a single family 3/2 and househacking or finding a duplex, etc and rent out the additional units. Purchasing myself I'd need to buy next year. However, if I had an LLC would it be easier to get a quadplex? There seems to be some good opportunity there and I'm wondering if my loan approval would be greater since the units could be looked at as income. Anyone have experience with getting financed through an LLC first instead? Thanks in advance.

[Ray Hage]

Hi. There are pros and cons to each. I am both a realtor and investor. I strongly advise buying the duplex/triplex and use your FHA loan for that provided the terms/rates/fees make sense. You will also be able to homestead it in FL which will save a lot in property taxes down the line (trust me on this! All my investment properties' taxes jumped!...but my personal residence is still low). I have gotten financed through my LLC as well but the terms and rates are not going to be nearly as good as having it in your personal name.