Househacking / FHA / Multifamily

[Heather M. L.]

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

[Tim Puffer]

@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! :)