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Updated over 5 years ago on . Most recent reply

Account Closed
  • New to Real Estate
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Flexibility of FHA Owner Occupancy status?

Account Closed
  • New to Real Estate
Posted

Hey! I'm Matthew, I'm fairly new to the world of real estate investing and rental properties, though I'm very excited to be diving deeper into things. I've been looking at 3 unit rental properties in the Manchester NH area that, while being able to net a solid positive cashflow right out of the gate, would produce less cashflow with me living in one of the units for a year or so while I save up for my next project. So my thought to increase cashflow right out of the gate would be to purchase an RV, park it on the property, and live out of that for the majority of the year while all 3 units are rented out, netting me . However, since I'm most likely going through an FHA loan when I do decide to purchase a property, it is required that I am an owner occupant. So really my question is this; if I purchase this 3 unit rental property with an FHA loan, and if I live on the property in an RV, does that still count as owner occupation?

Thank you!

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
30,163
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

What most people overlook, that to be properly insured, you need a straight landlord policy, not an owner occupant policy. And when you change that policy, the insurance company notifies the lender.  Most of these people not living in the properties, or even doing transfers to LLCs do not have the correct insurance policy, and are in essence, uninsured altogether because of that.

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