Changing strategies Hacking to pure investment property

[Kevin Hartley]

Until recently I have house hacked. Getting preapproved and then submitting offers. Hoping to acquire duplex or quad this coming year but would be happy with 3/1 or 2/1. Should the process be the same? Since the loans are not for my primary residence I understand that FHA and VA will not work. Any suggestions on lenders in the region?

[Liam Naughton]

Hi Kevin,

If you can get your VA loan back by refinancing the one you have outstanding that might be a good option for you to take down 2-4 units. Check with your lender what your new payment would be on the existing and what that would allow you to afford on your next purchase.

You can still do an owner-occupied loan up to 4 units but if you're using your FHA/VA loan you'll have to go conventional 5-10% down. I recommend 10% so you're closer to getting PMI removed. If you can swing living in one of the units of your new multi it could help to lower the rate on your loan by about a point, which I highly recommend.

The process is almost the same but your inspection is going to cost more and you'll have to take over the leases of the tenants already in place. Nothing you can't handle if you're coming from house hacking.

Good luck!