Potential Triplex deal...trying to minimize my downpayment

[John D.]

Hi all!

I found someone that is willing to sell a triplex that is fully occupied. (link to deal specs below) The asking price was $185K, I countered with $145K because that was what I felt comfortable with looking at the numbers. He came back with $150K and it still seems attractive.

I'm looking for any and all advice and really want to know what I can do to not have to come up with $42K out of pocket. My credit score floats between 780 and 810.

Thanks everyone!!

https://www.biggerpockets.com/calculators/shared/564357/4790a218-205c-4aa0-bb54-ea341eeb43e8

[Ivan A.]

Here's my advice: Take it up as your primary residence to do a conventional or FHA loan, and you can decrease your down payment to between 3.5-10%. Of course that means a 1/3rd rent lost since you'll live there, but thats better than paying a difference of several tens of thousands up front, and you can just move later.

Btw, if you go this route, be careful with the language you use with the mortgage officer, agent or closing attorney around how you're using it as an investment vehicle versus a primary residence that will so happen to pay you handsomely. At some point during underwriting, you'll probably be asked to write up a signed letter of why it will be your primary residence, such as it will be closer to your job or your kid's school, etc. There's obviously been a lot of mortgage fraud in the past 10 years where people took advantage of this sort of stuff and didn't actually move in to the property so I don't want you to be thrown in such a bind.