Financing My First Real Estate Purchase | A Triplex or Fourplex

[Conner S.]

What's up BP gang!?

So I'm on a mission to buy a triplex or a fourplex this spring/summer(2017).

My plan:

- Purchase multi-unit property around mid $300,000 range utilizing FHA loan and placing 3.5% down. (possibly FHA/203k if upgrades are needed).

- I live in one unit, then rent the others out to cover mortgage and generate monthly cash flow.

- I hold on to the property, refinance and/or sell in the distant future.

- Roll all profit from selling/re-fi into second investment property (1031 exchange).

- Rinse and repeat throughout the years, drink mojitos on the beach.... lol.

After speaking with a lender, my current debt to income ratio isn't the best, but I have good credit 740+. I'd be eligible for a mortgage around $200,000... which isn't where I need it to be to purchase a triplex or fourplex. I live in the Boise Idaho area and most multi-units are running $300k-$400k. Also, after closing costs and so forth, I'd need more money than what I currently have saved. One way or another, I'm going to make this purchase happen this year. So, I've come up with an idea.

This is the option I'm thinking of and would like some feedback on. Pros, Cons, I want it all:

- Have a parent do a home equity loan or open a line of credit on their home.

- Use that money for down payment/closing costs

- Have a cosigner for FHA, with good credit and low debt. (How much would a cosigner possibly increase my approved mortgage loan amount? Also, the higher the income of a cosigner, does that then increase the amount I'm able to get approved for? For example, having a cosigner that makes $300k/year versus a cosigner that makes $50k/year. Both having low debt and good credit).

What are everyone's thoughts? Feel free to share more options/ideas that you might have to help me pull this off this year. Let me know if you have any questions or if I need to clarify anything.

Thanks a ton!!