BRRRR Strategy on a House Hack. Please Answer!

[Joshua Manning]

Hello everyone,

So I've been doing some research trying to see if you can Utilize the house hacking a BRRRR strategies on the same property. Combining the two basically. There are a few questions that I can't answer though.

1. Do you have to use an FHA loan to buy your multifamily property?

Normally I would assume the answer be NO, but everyone always suggests getting a FHA loan for house hacking. I know it doesn't require a huge down payment and all, but can't you also just use a Hard Money lender or a Conventional Loan to buy the property as well, or id there some real reason why you can't house hack without a FHA loan?

2. How much equity do you need in a property to cash out refinance?

I want to know the cash out refinance requirements for an FHA loan as well as a Conventional Loan.

3. Building up equity in a property.

So one argument about not being able to combine these two strategies is that you can't build up the necessary amount of equity in a property over the course of the year you are required to stay in a property. But this doesn't make sense to me because aren't you building up equity in the property by forcing it to appreciate through the renovations you do on the property? If the ARV of the property is significantly higher than the Purchase Price than that should already give you a lot of equity.

4. If you are living in one of the units is this still an investment property?

I have also heard that Banks won't cash out refinance on a investment property with a FHA loan. But is the property still considered an investment property if you are living in one of the units?

If anyone can answer any of these questions I would be extremely grateful.