Quadplex - FHA

[Kyle M.]

Well I had the mindset on buying my first single family home and living in it with the intention of renting it out to tenants in the future. But after hearing the advice of the people here I have changed that mindset. I now want to pursue a multi-family home for instant cash flow and a place to call home.

FHA is hindering my ability to make a profit monthly. Is it ever worth it to be a little thin when having a FHA?

This is an example property that I am looking at, the asking price is higher than the following example.

1)

Quad-plex / FHA 3.5% down
Value: $310,000
Gross monthly rent: $3200
Mortgage Payment: $1840
50% rule: -$240

2)

Quad-plex / 30yr, fixed, 20% down
Value: $310,000
Gross monthly rent: $3200
Mortgage Payment: $1460
50% rule: +$140