House Hacking Strategy. 4+ loans, Is this possible?

[Tony Hightower]

I know there are several discussions about how to maximize loans and how to order them and after 4 and 5 there are different down payment requirements. Let's say i want to get several doors with as little out of pocket as possible but in a small time frame. (Don't want to House Hack for 4 or 5 years). I know that after 4 or 5 loans that the down payment amount increases. 

So, can I buy 5 SFR's and put 20% down, then go and buy a 4-plex to House Hack with 3.5% down FHA as a 6th loan? And then a year later REPEAT this?

[Michael Cohen]

Hi @Tony Hightower - The FHA was designed as an owner occupied primary residence product, primarily for first-time home buyers. One of the guidelines for FHA rules that you would bump up against is the "100 mile" rule whereby you cannot use rental income as qualified income if you currently own property within 100 miles of the proposed FHA property. There are a few exceptions here (military orders, employment-forced moves, etc.) but for the most part, any income you have that isn't derived from rental income on the SFRs would have to be able to sustain all 6 properties in order to qualify for the FHA loan.