FHA requirements and Airbnb ideas in Nashville, TN

[Alex Boulger]

Hi everyone! I'm newer to the real estate game, but very anxious to put in more work to earn more business than I have. Currently I own a condo that I used as a live in flip and have a renter in my guest room paying the mortgage. This plan worked out better than I could have anticipated and I feel like I caught the real estate bug. My only problem is that I don't have much capital remaining after this deal. I'm only 24 and trying to build up my investment portfolio leveraging the real estate industry. 

I had an idea that I want to get some opinions on. I currently live in Knoxville, but have been doing some research on airbnb. It seems that Nashville, (only 2.5 hours from me) is one of the top airbnb performers. I have a couple friends in Nashville right now looking to buy a property. I had the idea to try and buy a duplex with one of them so I could maybe qualify for an FHA loan. I want to know that if they are on the title with me and living in one side of the duplex, can I qualify for an FHA loan? This way I can use the other side as an airbnb or if that doesn't work out, plan b use as a long term rental. I feel that this may be a good way for me to score a good deal on a property without putting down too much capital. Ideally I'd move to Nashville, but I just landed an amazing engineering job here in Knoxville that pays really well and I do not want to give that up.

Please comment any advice or opinions you have on this idea. This industry has brought a ton of hope for me and I have the time to put into this, but right now I'm just hunting for more experience. 

Thank you all for your time,

Alex B 

[Luke Carl]

@Alex Boulger 

First.... Airbnb is basically illegal in Nashville. There are a couple of exceptions but the one you’re describing is not one of them so that’s out. 

Second.... the best short term rental (Airbnb) market arguably in the world is right down the street from you in pigeon forge where you could get in to a second home loan for as little as 10% down. 

You can only have one FHA loan at a time. How is the condo financed?

You must live in an FHA for a minimum of one year or have that INTENT. I don't know for a fact but I doubt you'll be able to put a partner on title with ab FHA. It's not worth the risk anyway you're basically telling the world that that person owns half of your house AND you're letting them live there. That's not going to end well you're basically giving them a free house.

My questions are rhetorical. I like when people hit the Vote button :)   

Good luck!