New Investor in need of some advice

[Account Closed]

Hi BP!

First Post!

So I've been working hard the last month to learn all I can, and speak with lenders / agents and figure out a business plan. I'm at a point where I could use a little advice.

Just a little info on my current situation/plan. I live in Salt Lake City, Utah, and am currently renting an apartment, with a lease that ends in September. I would ideally like to owner occupy a 2-4 plex at the end of my lease. I just paid off my old car, which dropped my credit score from a 710 to a 680 (it was the longest history on my credit). I am currently sitting at a 25/33 DTI and am looking to get an FHA to owner occupy the property. I have about 10k in cash to put towards a down payment.

Now, I've spoken to 3 lenders this week to try and figure out how much I can actually get a loan for. I've tried to be very clear on what I want to do, but haven't been able to get a clear answer. I want to know what my range is so I can start looking at properties.

I've tried to keep what I say consise, like "I am currently looking for an FHA loan to owner occupy a multi-tenant property. I have a 680 credit score, but just recently paid off my car. I'm currently at a 25/33 DTI, but we can go over it if you'd like. I'm just trying to find out what range I can qualify for so I can begin looking at property."

Every single time they re-direct and start talking about getting me into a single family home with a conventional mortgage. Of the 3 that I've spoken to, none have even began to talk about my plan with me. They immediately diflect and try to push me into a single family. They've told me that it's too risky because I don't have landlord experience, but that can't be the only thing. If that's the case, where do you start? You gotta start somewhere, right?

So, Am I just talking to the wrong lenders? They've all been personal recommendations from family and friends. Is this plan just crazy? I've read blog posts and forum posts about "house hacking" working for other people. Could it just be that this is my first property and I don't have any landlord experience? I'm more than happy to pay for a property management company. Is there a lender here on BP that could just give me a rough estimate of how much I can qualify for?

I just feel a little lost at the moment, and would really appreciate your input.

Thank you all for taking the time to read this!!

-Emily from SLC.

[Amy Kendall]

@Stephen Paunovski any lender is going to want to see all your pertinent financial documents.  Whatever lender you go with will probably give you a list of what they want, but the list is usually very similar.  This usually includes your last three years of tax returns and bank statements.  When I first started, I created a 3 ring binder that included these things plus all the leases on my rentals and whatever else I thought they would need.  I had a few of these binders and when I applied for a loan, I would just simply bring it into them.  I had it well organized with tabs, and I think it was helpful because it showed them that I was organized.  Now I usually just do everything electronically.  Just be prepared, because no matter how much you provide in the beginning, they will always ask for more at some point.