Multi-Family HUD

[Joel Nickerson]

Hi all!

First I just want to say I have been on BP for less than a week and have found my new web home-page. Loving the podcasts and all the articles that the members have written and posted. Thanks to everyone who so freely shares their knowledge, it means a lot to all us beginners. Can't wait till I have the experience and knowledge to share one day!

Okay - now for the question. I am looking to start by buying a property in CT. Right now I do not own any property, but was looking to buy a HUD multi-family in the Hartford area to fix-up and rent. I figured the math on most of these properties worked out so I could make my mortgage on one renter fro a triplex, and use the rest to save for the unpredictables and my next investment.

ROAD BLOCK**

Recently found out that I either need to live in the property for a period of time (no one has told me how long), or put 25% cash down. The properties I am looking at would be a total investment of about $100k. I have about half of that in the bank, and do not have a "bank of mom" I can get the money from.

Does anyone know of a way around this HUD law of either living in the property or putting down the 25%? If there is none, I will need to start smaller, which I am fine with. But I am not one to give up unless I know there is absolutely no other way.

Thanks in advance for your tips!

Sincerely,

Joel