Building Multi-family 4 unit investment property

[Kendra Morrison]

Hello, I am new to this website but I am looking for any information or advice this community can offer on building a 4 unit multi-family property for investment purposes. 

I am going to be financing the project through an FHA loan at 3.5% down payment. I have read contradicting information on whether or not FHA will finance a multi-family property. Most of my research is saying yes but that it is difficult to get an FHA OTC(one time close) loan. This would include the purchase of land, financing of the construction loan, and the overall mortgage after it is built with one monthly payment and one closing.

The limits for my area/state of Florida are 4 units which keeps the loan residential and not commercial. FHA also limits the loan to 4 units. I was also considering going about this with a modular builder and avoiding stuck built on site construction to keep my cost down. I've seen ranges of $60/sqft. - $110/sqft. depending on how finished the product is presented. The FHA OTC loan prevents the loan holder from doing anything themselves and all work must be done through a contractor. I am also aware that I have to make sure the land I purchase must be zoned correctly. Along with the land cost I'm aware there will be additional cost to clear it, rent a dumpster, add a septic tank, and have electricity ran from the city to the property, etc. My area of SWFL has ever rising rental cost and I believe I can rent each unit (3) at $1,400+/month while living in the 4th unit. I must live in the 4th unit a minimum of a year under the loan terms.

The main reason I am trying to build is because of the reduction in repair cost, the increase in potential rent, and the lack of available 4 unit properties anywhere near my current area. I can find a million duplexes but rarely two sets. I also don't know if FHA would allow me to purchase two separate sets of duplexes even if they are being sold all together. FHA also will not allow me excess money past the cost of the building for repairs whether I were to be approved for it or not. I would have to take a separate loan out to repair the building in order to update it and get what I need in rent monthly.

My questions:

1.) Does anyone have experience building modular multi-family properties, using an FHA OTC loan, or doing anything close to this strategy.

2.) Any advice on what builder to use or how to go about getting this type of loan? I am struggling to find builders in Florida who do multi-family buildings. 

3.) Does anyone know if I can avoid a realtor and go directly to a mortgage broker to procure the land and get the loan. 

4.) Can I avoid an architect by using floor plans I find online or choosing from the options the modular home company gives me.

5.) Any general recommendations or advice on this topic are greatly appreciated.

Thank you for taking the time to read this lengthy post and reply!