Financing Condo Unit as Invesment

[Alexander Zurn]

Hello, I am again on the verge of purchasing my first unit! A small condo unit in a 4-unit Condo Complex. The numbers work, it cash flows VERY well. If rented right away, I could pay off in 10 years.

My problem is financing. I want to finance as an investment but here is the problem. It seems to be industry policy to not give a loan to a condo that is NOT 50% Owner Occupied. As of now, there is 1 owner and 2 renters in the complex. I would rent it and therefore make it 75% rented, 25% owner occupied. This is forcing me to owner occupy, which isn't the end of the world but it's not how I first saw it. NOTE: It is not HOA guidelines to have 50% owner occ. it is the financing (perhaps government guidelines) industry.

Any ideas of how to finance this as an investment? I understand I could owner occupy, put 3.5% down, live in for a year, and then start renting/cash flowing. I suppose this is why it has been on the market so long.

Any advice helps! Thank you