Seller Financing/FHA Question

[Peter LeRoy]

Hey Everyone, brand new to real estate investing and excited to begin this journey. Thank you in advance for any advice or suggestions. Much appreciated. I am about to purchase a multi-family property here in Watertown, Ma. The market here, like most of the country, is on fire. So deals are pretty hard to come by. I found an off-market deal through a friend's uncle who wants to finance the deal for 12/mo. so he can figure out his 1031 exchange options. My wife and I have already been approved for an FHA, but having the seller hold paper would also help us avoid PMI and save us money. I feel it is a win for both parties. Both units are occupied at market rate, so we will use this solely as a rental property and have no plans to move into the property. We have enough money saved to purchase a second multi-family in the area for us to move into. My question: Can my wife and I still use or qualify for an FHA loan for our second property?

Best,

Peter

[Peter LeRoy]

@Wayne Brooks that is some great points. Thank you. We are purchasing the house for $950k and from comps in the area, the zestimate, and our realtor buddy who looked at the property with me it evaluates at around 1.1 to 1.2. So we will have some equity when we refinance…I hope!