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Updated over 6 years ago,
Fourplex or rent rooms?
Hi everyone,
Not sure if this makes more sense to Californians & other expensive real estate markets vs more affordable ones but roommates are very, very common here in SoCal . Given that fourplexes are few and far between, and rooms rent for what units would in California (I’m in Orange County, 30 miles from LA... probably applies to many other metro areas as well) would it make just as much sense to get an FHA loan for my first property in California as a SFH with 4 bedrooms?
I’d house hack, living in the home for at least the required 1 year and I’d do so with a much smaller down payment, lower ongoing overhead, and collecting the same if not more in rent. Roommates sign leases here with the homeowner and have similar protections as a landlord. Tenants have similar protections as fourplex renters would, as far as I understand it. What would you do in an expensive SoCal market ripe with renters?? Get the SFH and rent rooms or wait and wait to find a fourplex with a much higher down payment and mortgage payments?