Purchase a 4 Unit Multi (FHA) then buy 4 Unit Multi (Conv.)

[Eric Neith]

This is my first forum question since I've been a member, so thanks in advance. First off let me start by saying I am a licensed realtor in PA and the properties will be purchased in PA. I am looking to purchase a 4 unit multi with an FHA loan. I know I am supposed to live in it, but I probably wont. After I make this purchase I would be looking to purchase another 4 unit with a conventional loan, with the intent to live in this unit. This is where my questions come in...

Is there a time frame after acquiring the FHA loan to wait to go conventional?

If I occupy this second multi, can I use a 5% conventional loan?

Last off, is this scenario possible?

If not any recommendations to acquire 2 multi families in this fashion with fairly no money out of pocket. The FHA purchase would almost be no money if I roll in closing costs and add my commission. Same with the 5% conventional. I've figured less than $10K to purchase both multi families with this strategy. Thank you!

[Aaron Hunt]

Originally posted by @Eric Neith:

This is my first forum question since I've been a member, so thanks in advance. First off let me start by saying I am a licensed realtor in PA and the properties will be purchased in PA. I am looking to purchase a 4 unit multi with an FHA loan. I know I am supposed to live in it, but I probably wont. After I make this purchase I would be looking to purchase another 4 unit with a conventional loan, with the intent to live in this unit. This is where my questions come in...

Is there a time frame after acquiring the FHA loan to wait to go conventional?

If I occupy this second multi, can I use a 5% conventional loan?

Last off, is this scenario possible?

If not any recommendations to acquire 2 multi families in this fashion with fairly no money out of pocket. The FHA purchase would almost be no money if I roll in closing costs and add my commission. Same with the 5% conventional. I've figured less than $10K to purchase both multi families with this strategy. Thank you!

Can’t knock the hustle, even it’s suspect at best.

1. Need to live in it for one year under FHA rules. Can go conventional after 12 months of your FHA.

2. Could do 5% conv on next owner occupied.

You will get strapped with FHA PMI for life. And once you "move out" you no longer qualify for residential loan rates so you're hosed if you are trying to refi or drop PMI.

Better option is probably to FHA, refi it to conventional residential rate, then FHA into your next.