Multi-unit loan strategy

[Lindsey Matejak]

Hey BP! I just refinanced my primary residence to a 30yr conventional fixed rate loan. Our building is a 3-unit in Chicago--my wife and I live in one unit and rent out the other two units. We would like to buy a new multi-unit and move into one of the units of the new property while we rent out the other units in the new building. We want to keep or current building as a fully rental property.

1) How long are we required to stay in our current multi-unit after refinancing? 1 year? Any way around this?

2) We want to put down the least possible amount on the next property as long as the numbers work for cash flow. We've already explored the FHA route, but with the restrictions in place, we have found that this is impossible for us to do in Chicago (i.e. per the lender: must be 100+ miles from our current property, FYI loan limits, they won't take into consideration the potential income for the unit we are currently living in to calculate debt to income ratio which is about $3000+ per month, etc). We are being told that 20-25% is are only option if we want to buy another multi-unit in Chicago. Anyone have alternative information or ideas for less down payment?

Thanks in advance for your assistance!