House hack with FHA financing and current tenants

[Kyle Murphy]

I'm analyzing an opportunity to buy two duplexes on the same lot in Los Angeles. I know that all four units are tenant occupied, two of which are renting far below market rent. I'm trying to figure out my options to finance this property using an FHA loan. Ideally, I would move into one of the units. I've read a few other posts on BP around this topic and the best suggestion I've seen thus far is try and negotiate with the seller to have them buy out one of the tenants so that I can move in and obtain FHA financing. If anyone has any other suggestions I'd love to hear them!

Also, assuming this is the best option and the route I plan to go: The seller wants to see that I have financing lined up before I view the inside of the units, so do you have any suggestions around how to move forward considering my financing would be contingent upon the fact that I live in one of the units?

Thank you!

[Shayne Fee]

I would still get the previous owner to deliver one unit vacant if you can and check if you're in a rent control area.

Also FHA loans have pretty strict rules regarding total rent needed to qualify and price limits. These can be challenging to meet in most desirable neighborhoods around LA...I have done a few of these FHA deals personally in the last few years. Feel free to message or email me if I can be of assistance!