Buying a 4-plex - I want to add additional units

[Scott Harlow]

I'm about to close on a 4-plex property. I'm very happy with the deal. I'm going with an FHA loan (3.5% down with 3.75% interest) and will be living in one of the units. The monthly rent from the other units will cover my mortgage plus a few hundred in cash flow. I'm planning to hold this property for many years to come.

The units are on a large lot - only built on about 1/3 of the .37 acres. The property is zoned R-3 so I could potentially add as many as 8 units to the property (based on the lot size). Has anyone had experience adding units to a property? How did you go about getting financing for it? I'd like to eventually build another 3-4 units on the property.