FHA Multi-Family House Hack

[Ethan Berk]

Hey Bigger Pockets family,

I'm 18 years old and have taken an interest in real estate investing after reading, you guessed it, Rich Dad Poor Dad. Since then i've read many of Brandon Turner's books. I've been prequalified for an FHA loan and have decided that's the route i want to take. I've found a 4 unit complex in my area for a good deal that will cash flow. After the mandatory year of living in one of the units i would like to rinse and repeat while keeping the first property in my portfolio.

To my understanding i will have to refinance the first property before i can take out another FHA loan for the second property, correct?

My concern is what if property values do not continue to rise like they are currently and what if interest rates increase? It will make it hard to refinance the first property to a conventional loan because i won’t have much equity in the property, rates may be higher and the property value may not be worth too much more making it hard for me to refinance and add a second property to my portfolio.

I may be speculating too much or thinking too far ahead, but that’s just how i am.

Any help or tips would be much appreciated!

Thanks,

Ethan B.