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Updated over 5 years ago on . Most recent reply
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Househacking / FHA / Multifamily
Hi,
I'm a newbie to the industry, hoping to buy my first rental property this year. I'm considering using money from my 401k as a downpayment on an FHA loan. I want to househack a multi-family and live in it for a year or two, then move on to other properties.
Does anyone have any advice/experience with FHA loans, or other lenders in the Wisconsin area?
Has anyone ever used money from their 401k to jumpstart their real estate investment company, I'm a little nervous about using retirement money?
Any advice you provide is greatly appreciated?
Best Regards,
Heather
Most Popular Reply
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@Heather M. L. - I used an FHA loan for my house. In my experience having used one myself and talking to my two best friends who have also house hacked - FHA loans aren't that difficult.
Don't let the PMI scare you away!! Run the numbers and include the cost of PMI. Only make a purchase where the numbers work. The numbers work on my duplex having factored PMI. Once I move out and rent the unit I'm living in my cashflow will be $500 per month on the building.
I'd say save tapping your 401(K) for when you graduate to a 5+ unit building! :)