FHA Loan advice for multi-family in Minnesota

[Jerad Gardner]

So I am looking to invest in the St. Paul/Minneapolis area in Minnesota, I will most likely be looking to purchase a triplex or fourplex as my first property with an FHA. Dose anyone have any advice about this strategy in the Minnesota area? Such as certain banks or credit unions that work best for this strategy? Dose anyone know someone or personally has any good or bad experience with this method? Do you think this is realistic and doable in the St. Paul/Minneapolis market in Minnesota? If you have done this method what did you get, for how much, what are your returns on it?

Thank you to anyone who reaches out!

[Alexander Zurn]

@Jerad Gardner i am doing the same. FHA requires 3-4 unit properties to be self-sufficient, which simply means the piti (principal, interest, taxes, & insurance) = 75% of the current rents and/or market rents (whichever is lower). This is a good way to analyze a deal before you get into the loan part, it being self sufficient or not, so be sure to consider it.

Also - if it is your first property, you should look into a Minnesota first time homebuyer program. I am not sure what they offer but most offer a down payment or closing assistance amortizing 2nd loan, which is essentially less money out of pocket. Some states even have forgivable loans if you keep the home for 2-5 years (depending on the state).