Lending Options for a Triplex (newbie in real estate)

[Angela Hansen]

Hello BP!

I have been reading and studying as much as I can for the past year and I am ready to get started in investing. I am astounded and thankful to have come across BP.

My story: I currently own one property that I have turned into a rental. I used a VA loan for financing, so now if I want to purchase another home through FHA I have to actually be living in it. I currently have my sights on a triplex: one unit is 2 bed 2 bath, and two units that are 1 bed 1 bath. All units are currently occupied, and one of the units houses an older man who does the "handy work" and maintenance for the property. It cash flows $1400 per month. The property was built in 1978, so it isn't the most aesthetically pleasing, but the tenants there love living there (from what it seemed like during my walk thru).

Now, to get to my question, since all units are occupied and  I wouldn't be planning on living in the property, what are some financing options that would be best and require the least amount down? I plan on buying and holding with this triplex.

I would appreciate any advice and I look forward to interacting with the community!  

[Jeff B.]

You have an issue with existing tenants. Your intent to OO is necessary for the FHA loan, but also means you must evict at least one. You are advised to make that a contingence of the offer.