House Hacking a Duplex

[Shaun Dockery]

Hey everyone! I am currently looking for a duplex in metro east are of St Louis, this will be an owner occupant as I will live in one side and rent out the other to get started. I have a couple questions for all you savy people out there. 1.) I will be doing an FHA loan so I can get into it for only 3.5% down. I know you have to live in it for 2 years, but after that is there any restrictions on an FHA loan where I can't rent both sides out? 2.) Is there any benefit to starting an LLC and renting it out from your own corporation? Thanks all for taking the time out or day to answer!

[Brie Schmidt]

@Shaun Dockery

1. The requirement is 1 year, and then you can move out and rent both sides

2. As long as the title is still in your name it won't trigger the due on sale clause, then you can have the LLC manage the property and sign the leases. I don't really see the benefit as the loan would still be in your name, so you have "pierced the veil"

I would also ask your lender if they do the "home possible" loan, it is a 5% conventional loan that is only available if you do not own property. Many of my clients do it for the first, and then do the FHA for the second, getting two low money down programs. But it won't work if you do FHA first. Here is a map of the areas they do

https://homeready-eligibility.fanniemae.com/homere...