I just closed on a 4-plex Purchase with an FHA loan

[Jinhee Park]

I just closed on a 4-plex purchase with an FHA loan in Tucson Arizona. After 6months of jumping through hoops of securing financing as a self-employed person, searching for the right property, getting the offer accepted, negotiating roof repairs with the seller to meet the FHA guidelines, I finally got it closed.

purchase price:  $243,000

I got the seller to pay $5000 to cover part of my closing cost.  

I got a FHA loan 30-year fixed interest rate at 4%.

The 4-plex has two 1bedroom 1bathroom units and two 2bedroom 2bathroom units.  Fair market rents are $650 for the 1/1 unit and $750 for the 2/2 unit.

Monthly PITI payment is $1634.

I’m going to occupy one of the 1/1 units.  The other three units are rented out to tenants already. 

So with the total rental income from the other three units are $750 + $750 + $650 = $2150 per month, which more than covers my PITI payments.

I get to live in this property as a primary residence for free and have some extra cash flow every month.  I’m very happy with this purchase.