How to buy more than one 2-3 unit homes as owner occupied

[Joseph Schriever]

Hello All,

I am in the process of looking for my second 2-3 family house and have talked to three different banks about my options to finance it. All three of them have told me that because I currently own and live in a duplex and collect rent from the other half, that this next house must be considered an "investment property." By doing this it forces me to put 25% down plus 2 points instead of the 20% for being owner occuipied personal property.

My plan is to move into the next house, fix the apartments up while living in it and then move on to the next house and do the same thing. But by needing 25% down plus two points for each new property, that will greatly affect the deals of the houses I would be pursuing.

Can someone give me some advice on better financing options for my next house?