Starting out in real estate

[Francisco Avitia Jr]

Hello this might be a dumb question but I have no idea about real estate and I am just starting out I am 31 years old and would really love to invest in real estate I live in the San Fernando valley and my question is if I can use my FHA loan for a 40 unit apartment worth 4 million

[Melissa Hartvigsen]

Quote from @Francisco Avitia Jr:

Hello this might be a dumb question but I have no idea about real estate and I am just starting out I am 31 years old and would really love to invest in real estate I live in the San Fernando valley and my question is if I can use my FHA loan for a 40 unit apartment worth 4 million

Hello Francisco,

Great question! FHA loans have a maximum of 4 units. Conventional loans also max out at 4 units. Anything five units or larger is considered commercial for the purposes of financing. Commercial loans generally have shorter terms, higher interest rates, and substantially higher down payment requirements than FHA and conventional loans.

You should start with getting a loan pre-approval so you can see what financing options you have available and what your out-of-pocket costs will look like.  After that, you should start identifying properties.

I recommend looking for local pros in your area. They can give you advice that is specific to your market.

Good luck!