How to get creative with making a 5 unit work

[Jacob Lapp]

Hey everyone,

Just bought my second multi family and things are going well!

My path/plan has been as follows.

Bought first house/ triplex with first time home buyer 5% down conventional by claiming residency for a year.

Bought my second house/ duplex with 15% down conventional claiming residency for a year.

My plan is now to use my FHA loan 3.5% down on a larger 4 unit building. (They have been scarce)

I’ve been walking around my new neighborhood and scouting out possible leads. I have come across a few great looking 5 unit buildings that I would be very interested in.

I know over 4 units is considered commercial my question to you all is

1.) Could I buy a 5 unit with the intent to eliminate the 5th unit and make a bigger 4th unit and it be considered residential?

2.) (If 1 is impossible) How could I go about structuring owner financing that is a win for the seller and myself?

Thanks in advance!