Selling a condo in a 4 unit complex

[David Brown]

Disclaimer: I'm brand new to real estate investing; please feel free to correct any assumptions I have made.

I am considering a purchase of a condo in a 4-unit complex as an investment property. I understand that lenders will generally only lend money if more than half are owner occupied. I assume this applies on the back end, meaning my purchase can't be the one that pushes it past 50%. So in this case, if two are already investment properties, I'm out of luck getting a loan. In this case that's only 2 units.

Hopefully I have that right so far.

My concern is that, even if I buy the condo (all cash or others are owner-occupied), down the road when I'm looking to sell the unit I'll potentially be limiting my pool of potential buyers if 2 units are investment properties since other investors might not be interested or couldn't get a loan. And even if my unit is the only investment unit, that might be considered a risk factor and a turnoff to other investors.

So, I turn to the experts here. As an investor, would a unit in a 4 unit condo complex with the restrictions that come with it be a turn-off to you?

[David Brown]

Thank you for the replies! It's good to hear from people with experience. It sounds likely it is at the lender's discretion.

@Logan McKay Zylstra thank you for the offer. I'm currently working with a lender but if that doesn't work out I'll reach out.