Multi family, owner occupied investing

[Christian M.]

Hey guys,

I was curious about an investing strategy I plan to follow and was wondering if anyone on here has attempted this strategy and if you could let me know any flaws you find in my strategy. I am a 23 year old accountant looking to invest in the Boston area, which is a pretty expensive market. Since the prices are so high my plan is to build my portfolio through owner occupancy for the first few homes I invest in so that I can afford the down payments. My strategy is to put 3.5% down on an FHA loan on my first multi-family (mainly looking at 3 families). The goal is to cash flow $0 while owner occupying so that when I move out the unit I was living in is pure profit. After living in the first property for a year I plan to buy a second multi-family and owner occupy that as well so that I can put less down than a typical investment home. I want to follow this strategy and purchase 3 homes in three years and owner occupy each one for a year so that I don't have to put down 20-25%. I also want to make sure each home cash flows $0 or close to it while I am living there so that I can use the savings from not paying rent to save up for me next home. Being as young as I am I really don't mind moving around to new places in the city each year so I thought this would be a good way to put down as little $ as possible and take advantage of my willingness to move and explore new areas. I am not necessarily concerned with finding the cash flowing properties because I have been analyzing properties for a while in my area and have found multiple locations that would cash flow $0 and even positive cash flows while owner occupying the home. I am more concerned with the financing. What is the minimal down payment you guys think ill be able to make on my second and 3rd owner occupied investments? Keep in mind I have very good credit (high 700s). Please let me know any improvements you think I could make to my strategy and any bumbs in the road you think I may encounter. I haven't really seen many people trying to use this strategy which is why I feel there may be some flaws in it, or maybe people just aren't willing to move around for a few years as much as I am.

Thanks!

Christian