Buying a multi family home

[Harriett Williams]

hey BP fam! 

I'm looking to purchase a multifamily home as a first time home owner, I would like a triplex or fourplex. The issue is that I won't qualify for financing at a traditional bank any time soon as I work on my business and credit. What are some creative financing ideas I can do? I plan to have my family occupy one unit and rent out the others. Cash flow would be amazing but my main objective is to cut out my biggest monthly expense RENT!! Is there other ways to go about this? Could a more experienced investor purchase the property and sell it to me with seller financing? I would be the one managing the property and tenants, looking to get started on this journey as soon as possible but no longer then the end of the year when my current lease is up! 

[Jay Helms]

@Harriett Williams - a more experienced investor could do that, but you can also find a 4-plex where the owner is willing to seller finance to you. Since your family will be living there, start looking for places you'd like to live and contacting the owners. 

Pro Tip: Real estate can only be depreciated over 27 years. Owners who have held their properties for 25 years are approaching the deadline of the tax benefits of depreciation, meaning, they might be more willing to seller finance as they'll still take advantage of cash flow to them without being completely removed from the asset. Look for properties where owners have held for a long time.