How to scale with owner occupied loans

[Hunter Gibson]

Hey Everybody,

I am looking for a lender on a small multifamily home 2-4 units in PA with a FHA or conventional loan. Also I have a few rentals.

NEED HELP/ ADVISE on the best way to buy as many homes over the next 10 years with owner occupied loans that is legal. I would apricate any help or thoughts on how I can do this. How long I have to live in a home, how soon can I buy another home.

Thanks

[Patrick Roberts]

With househacks, the general rule of thumb is that you have to live in the property for at least one year as your primary residence. There are some exceptions to this, but none that are likely to work repeatedly because any UW with half a brain is going to see that you have rental properties and just bought a primary within the past year. 

Even if you stay in the home for a year, you may have a hard time buying a new primary with some lenders as this is generally being cracked down on right now. For instance, if you own a SFR and are wanting to buy a new SFR a mile away as a new primary without any other justification (bigger, nicer, better quality neighborhood, etc), expect pushback. Additionally, FHA has the 100-mile rule which is meant to deter this exact strategy.

DTI will likely become a roadblock by your 3rd or 4th property, also. DSCRs can help remedy the income part but not downpayment.