Financing Advice for Potential Triplex Deal

[Arman Tannu]

I am looking at a property here in FL that is listed as a single family for 470k but is functionally a triplex (3/2 house with a guest house in back that has 2 units, one is a 1/1 and the other is a studio, both units in guesthouse have kitchens). I was considering doing an FHA loan as I could live in it for a year. But I was wondering if it would be better to look into private lenders. I could pull about $4500 in monthly rent. I am also certain I can get this for less than $470k. Would love to connect with someone that could offer some guidance. Also, if you are a lender or know a lender I'd love to chat!

[Jason Park]

Quote from @Arman Tannu:

I am looking at a property here in FL that is listed as a single family for 470k but is functionally a triplex (3/2 house with a guest house in back that has 2 units, one is a 1/1 and the other is a studio, both units in guesthouse have kitchens). I was considering doing an FHA loan as I could live in it for a year. But I was wondering if it would be better to look into private lenders. I could pull about $4500 in monthly rent. I am also certain I can get this for less than $470k. Would love to connect with someone that could offer some guidance. Also, if you are a lender or know a lender I'd love to chat! Cell: 9733091249

Hey Arman,
I think it all depends on what you're looking to do. If you are looking to house hack and go the traditional route, it would most likely give you the lowest down payment option. There are multiple options depending on your end goal, capital position, long term/short term strategy etc.. 
Hope this helps!

[Brandon Croucier]

Seems like a good deal, I have a 15% down DSCR product that seems perfect for this!

[Robin Simon]

Quote from @Arman Tannu:

I am looking at a property here in FL that is listed as a single family for 470k but is functionally a triplex (3/2 house with a guest house in back that has 2 units, one is a 1/1 and the other is a studio, both units in guesthouse have kitchens). I was considering doing an FHA loan as I could live in it for a year. But I was wondering if it would be better to look into private lenders. I could pull about $4500 in monthly rent. I am also certain I can get this for less than $470k. Would love to connect with someone that could offer some guidance. Also, if you are a lender or know a lender I'd love to chat! Cell: 9733091249

This is an interesting opportunity and I think you are on the right track. ADUs and their income potential are a hot trend right now in real estate investing and as usual, the conventional lenders (FHA etc) are going to be slower to adapt

[Brittany Minocchi]

Hey Arman - 

If you're open to living in it for at least a year, owner-occupancy will be the lowest down payment option. If you don't want to occupy, there are other options that look at the income potential of the property and do NOT factor in your income, employment history or DTI but you'll have a significantly higher minimum down payment - plan on 20% to be safe. Income, employment and DTI would be factors with an owner occupied loan, so if you think you might have issues qualifying, making it strictly an investment property may be your best bet. Happy to chat, feel free to connect! 

[Alex Hunt]

Let’s chat on this! 
FHA maybe hard as unsure if it's a permitted 3 unit, if not it won't pass FHA guidelines.
DSCR would be the easiest route and then you can rent all the units instead of living in 1 and cutting your cash flow to 2 versus 3.

[Sasha Mohammed]

sounds like a good deal. a couple things of note to hopefully help: 

SFR w/ ADU is fantastic, you don't want this to be a triplex on paper. do your DD here, and make sure those ADU's are properly permitted as such.

if you intend to live in the property you will have to qualify w/ some type of ATR rules (income/ Ability to Repay). This doesn't mean you're stuck to conventional/ FHA, although those will give you the best terms (lowest down and best rates). there are NonQM options you could look into as well.

DSCR is a great option if you do not intend to live in it. DSCR will not allow for owner-occupancy, and also will require much larger down payments. BUT you can skip the income piece, as "qualifying" will be based on rents received, not your personal income.

[Jacob Sherman]

How big is each unit ? Does it have a variance to for multifamily ?