FHA loan, down payment, cashflow

[Alex Kohler]

Hi BP!

I had a quick question.... If you use and FHA loan for 3.5% down on a small multifamily property can it still cashflow (or at least pay mortgage) if I live in one of the units? Or will I have to put at least 20% down to house hack it? If so, what are the best cities to start out in if this is my first investment and not a ton of capital? Let me know, thank you!!

[Steve Cooper]

I'm 82 years old back in eon's I bought SFR property with no money down. Cashflow was barely makin' it. Full time work, low expense on my part was ok.

I then 1031 tax exchanged that place for duplex out of town, but in state. Still have duplex with big positive cashflow.

Brandon Turner (biggerpockets) has a low down/no down book you should get. Great ideas and examples in it.

Good luck