How many owner-occupied homes can you buy?

[Juan Abreu]

Hi all,

I'm new to BP and recently purchased an owner-occupied home. It is my understanding that I have to live in the house for one year before I can rent out the whole house. My question then is:

After the year is up, can I go and buy another owner-occupied home for a low down-payment? If so, how many times can I do that before I absolutely have to use a rental property loan? Has anyone done this and how did it workout? And are there any downsides to this?

I have found some older posts about this but kind of general, would be great if anything with first-hand experience could share.

Thank you for the help!

Juan

[Chris Mason]

Originally posted by @Ned Carey:

@Juan Abreu My GUESS is you can buy a new owner occupied property after fulfilling the requirement to live there at lease a year. However you may have trouble qualifying as you will have two mortgages.  @Chris Mason comments?

Convert the old one to a rental to offset the payment and make DTI work. Yes, that rental income can "count" if the lender in question wishes to allow it to "count."

Primary residences aren't subject to the FNMA cap of 10. So, in theory, 500 SFR primary residences that owner occ'd for a year each before converting to a rental, never put more than 5% down.

 I have clients that call me every 12 point fiddy months to buy their next house.