Can I just rent out both units right away in my 2nd property??

[Demetrius Walker]

Newbie questions here; would just like some clarity if possible. My wife and I were discussing our finances and we included house hacking in the discussion. I was telling her about the owner occupied loan, living in our first duplex for a year and then rinse & repeat for 2 or 3 more properties. She was on board and also had a question I was unsure how to answer. She was wondering what's so advantageous about living in the 2nd property and beyond (why have owner-occupied loans for subsequent properties after the first property)? Why can't we just keep living in our first duplex while purchasing another duplex and renting out both of those units right away? I hope that question makes sense! Thanks in advance for your insights! 

[Douglas Mcqueen]

@Demetrius Walker The benefit comes from the financing, owner occupied mortgages generally come with lower down payments, and lower interest rates. Also there are a slew of government programs that only apply to owner occupied dwellings (4 units and below) such as FHA loans, VA loans etc.. at the end of the day it just depends on your financial situation and how much $$ you want to put into the deal

For example rates at my local credit union as of this morning

Investment Property

15yrs (max) 2.525% with 25% down

Owner occupied 

Conventional 30 years 2.75% 5% down

FHA: 2.9% 30 years 0 down