What to with a fha house hack

[Angel Baez]

I just got approved for an FHA loan, I want to invest in a triplex, live in one and rent out the other two. Is this the best way to utilize leverage, or should I be looking at a four plex?

[Preston Roper]

If your goal is to leverage the most out of the current mortgage rates it does not matter if you are looking for a triplex or a quad the goal of trying to leverage the most is to borrow the most money. So the more valuable property would provide you with the most leverage.

That being said its easier than you think to over leverage so like @Kevin Zolea said make sure it cash-flows as a rental. No matter what loan you are looking to utilize you will have to meet the required debt to income ratio. Some banks will take 70% of the income produced by the other units in the property but that is rare and you will have to have a signed lease for that income to count toward your debt to income ratio.