New Member From Minneapolis

[Dean Harris]

Hello! I'm a new member from Minneapolis/St. Paul. I do not have any real estate investing experience, but I'm ecstatic about getting started in the industry. I started listening to the Bigger Pockets podcasts recently and began learning as much as I can about REI.

I am currently a CPA but my goal is to be in REI as my full time occupation in the next 12-24 months. I am most interested in multi-family rentals and want to purchase a 4-plex in early 2016 with FHA owner occupied financing.

So glad I came across Bigger Pockets as the amount of helpful information is simply amazing. Looking forward to networking and meeting you all.

Thanks,

Dean

[Logan Allec]

@Dean Harris, greetings from another CPA whose first real estate investment was a 4-unit property purchased with FHA owner-occupied financing.

One thing to keep in mind if you intend on something else you need to consider when looking for an FHA owner-occupied triplex or fourplex, which is that 85% of the market rents on all four units need to cover your monthly payment (principal, interest, taxes, insurance, and mortgage insurance). This is known as the self-sufficiency rule. It only applies to 3- and 4-unit properties (not SFRs or duplex) bought using FHA financing. I put together a spreadsheet here to help potential house hackers quickly analyze whether or not a property qualifies. There are other FHA requirements concerning which you should contact your local lender, but determining whether or not a triplex or fourplex meets the self-sufficiency rule is a good place to start as this rule will immediately eliminate many properties from your search, especially in expensive markets like mine.