Multi-Family Used As Primary Residence (Massachusetts)

[Patrick Sullivan]

Hello All,

TWO QUESTIONS ...

1) I am planning to FHA finance a property (any property that is within the characteristics of a 4 unit) and was wondering whether it is OK to rent out a HUD property under finance to three tenants with myself being primary resident. Can I bid in the "Exclusive" period instead of only "Extended"? Can I put down "Owner-Occupant" instead of "Investor" on the HUD-1 Form? How would I inform HUD that I would most likely be accepting tenants (if I need to)?

2) When we talk about a residence being a "2 bedroom" or "4 bedroom", does the term "bedroom" equate to "unit" (i.e. one bedroom = one unit)? If not, what would a "unit" consist of? Does this vary from state to state?



Thank You,

Patrick S.

[Matt Devincenzo]

You're WAAAAAYYYYY over thinking this man! The terms really do mean just what they say.

1) Simply put are you going to be the owner? Obviously since you're purchasing. Are you going to occupy and live there? I assume so based on what you said. Then you are by definition an owner occupant. If you buy a 4-plex no one expects that you're not going to rent the other three units. And if you buy a 4-plex and rent three units, and also get room mates in yours, as long as you still occupy then there's no problem. Which leads to #2...

2) A bedroom is just that a bedroom. A unit is an individual residence meaning a house is a 1 unit (or single family). A duplex or two unit is one building with two separate living areas i.e. 2 kitchens, 2 baths two front doors. A triplex is 3, a 4 is sometimes referred to as a "quad". Roommates are multiple people sharing one unit i.e. you have a 4-bedroom and you get three roommates that pay to stay with you. 

Roommates and tenants are different. Tenants rent a unit from you, roommates rent house space that they share with you.