Want to house-hack a 3/4-plex within 2 years but also want to be able to enter other cash-flow deals with conventional mortgages, can I?

[Tim Shin]

Hi All,

I've  been listening to @Brandon Turner and @Joshua Dorkin on the BP podcast a lot lately and I keep getting crazy excited about house-hacking a MFR 3 or 4-plex to live rent free and cashflow on a property. Even my reluctant wife is excited about the idea after listening to the BP podcasts on our road trip. I know FHA/203k loans are available to us if we are going to live in the property, but what else is available?

Also I want to be able to get conventional financing for other rental properties... Is it possible to get loans on more than one property in a year?

For instance, I'm evaluating this deal on a $65k 3/2 halfplex in Houston that has a tenant ready to renew there lease at $1000. I have a friend who will provide the 20% down payment for 50% equity if I provide the loan because I have a good job and we think this will bring about $300-400 in cashflow after mortgage, insurance, and taxes. Seems like a good deal. Can I get into this deal and still get into a MFR to live in with a 3.5% down FHA/203k loan with my wife and I's salaries later this year?

[Skyler Smith]

@Tim Shin When I got my loan for my first house hacked 4-plex I went to five different lenders before I got one that really understood what my goal was and was able to help. The fifth lender counted 75% of the rental income from the previous landlord to help me qualify for the loan. I've used that same lender for every deal since. 

Most won't work with you like that, and you'll want to make sure to disclose everything and keep as much cash in reserve as possible, but sometimes it just takes finding the right professional to help you get the type of deals you need to do. Have you talked to other investors in your area about which lenders they've had good success with?