Bought My First Multi-Unit Property - Now How Do I Buy My Next?

[Radley Estrada]

Hello BP Family,

After a ton of research on BP, reading the forums, and listening to podcasts - I took the leap and purchased my first rental property in July. I acquired a 4-plex property in Tacoma, WA using a 3.5% down FHA loan.

I am using the house-hacking and BRRR strategies - currently living in one unit, renting the other three, and repairing/upgrading the property as needed.  Although the beginning has had its challenges, I'm at a place now where things have stabilized a bit.  I'm refocusing on future goals and plan on adding more properties to my portfolio.  

And there lies my questions:  

What are my options purchasing my second property with my current property in an FHA loan?

How would you approach my situation?

How did you finance your second property?

Thank you in advance everyone.  

[Brent Coombs]

If its value NOW is sufficiently above what you paid (giving you 20% equity or above), AND you've lived there at least a year, AND after refinancing it into a conventional loan you'll achieve a net positive cash flow with all 4 units rented, AND you have another 3.5% saved for another 4-plex, then, you're ready to fund your next primary and re-apply! (That's the theory, anyway). Kudos...