Nashville, TN · Member since 2018 · 8 posts · 1 vote
Hello all
I am new to all this but my wife and I want to buy a quadplex or something similar and begin the landlord journey. I have been reading the Beginners Guide (great info in there) and learning a lot. Based on what I have learned we want to use an FHA loan and live in one unit while we rent out the other 3. The thing is we travel for work (keeping my job for now) and sometimes I am gone for 3 months at a time out of state. I know with the FHA loans you have to live there and I heard they sometimes check to make sure. So I am wondering if this is going to be a problem. I figure I can use a property management company for any needed repairs or emergencies if something happens while I am gone for work but otherwise my wife is available by phone consistently. I would hope to eventually have long term dependable tenants so I don't need the company as much but I am basically looking for someone to poke holes in my plans and see if there are any flaws. Thoughts?
Paul, I have no idea if this would work. But you could ask a CPA. Move into the unit...and offer it on AirBNB. You could rent it when you are not home and have it waiting for you when you are in the area. It will be your primary home so I think FHA would work. But again check into that. AirBNB is taxed at regular income not passive. Thanks, Dawn
Hey Phil, great questions. You should be fine. As long as your mailing address on your bills is that address and you claim that address on property taxes for your homeowner exemption (may vary from state to state), it's considered your primary residence. There's a .01% chance they come knocking on your door to check if you live there, so take that as you may.
As far as the property management goes, make sure your numbers still work with the prop management fee (typically 5% - 10% of gross income, call around and see what companies will charge).
Ok Thanks to both of you for your kind replies. I currently live (rent) just outside of Nashville TN but this area is too rich for me right now with every place having more than 20 competing offers most of which are cash, so I am looking in other markets where hopefully its not so hot. With my job I can work from anywhere.
I had not considered Air BNB but that is definitely an option, I have found one prop management company that charges 5-7% depending on services offered. I also figured if I get the right tenant I can negotiate lower rent for certain things like lawn care and such but again these are just thoughts running through my head at the moment.
FHA should work because it would be your primary residence. You will likely face competition everywhere, the key is having realistic expectation for your returns. If you do that you should be alright.
Update to my plan. I have an RV, what if I did an FHA loan like before and lived in the RV on the property while renting out all the units. I have came across a few that have RV hookups. more in the country.