Duplexes, Triplexes, and Fourplexes

[Amber Koontz]

Hello all

I'm a currently saving up and learning all that I can from BP. My first investment will be a duplex or higher. My plan is to stay there for the required year and then refinance to purchase another property. I'll be using the FHA / 203k loan and maybe utilizing the dealer concession. I'm curious to know about personal experiences from people investing in MFs owner occupied. What are the biggest downfalls to prepare for loan and refinancing wise as well as living there? Would you prefer brand new vs older? If you could do it all over again what would you do? Any comments are greatly appreciated.

[Matthew Schroeder]

Amber, I did a similar thing and lived in one of the units of my duplexes for a year, and it worked out great.  The rent from one unit was enough to cover the mortgage payments, so I lived essentially rent free for a year.  Also, during that year, I was able to do some renovations to my unit (the property needed some work when I purchased it) which increased the value of the property.

There are some potential downsides, most notably if you do not have a good tenant.  In my case, I hired an outside property management company & never told the tenants that I was the owner.  In retrospect, that was a really good decision or else I would have been inundated with requests.

Good luck!