Need Advice - looking to buy MF & SF with FHA

[Chris Bluem]

Hi All,

I am looking for some advice regarding my real estate strategy going forward and specifically the sequence of the events to make it happen. Below is a little background.

I am looking to downsize my current home (FHA) and purchase two properties, one multifamily (My FHA) and another smaller property (apt/townhouse) with my partners FHA or 20% equity. A family member is also a real estate agent and would provide me with the 3% commission on the purchase of the new properties, minimizing cash outflow on the new properties.

So my high-level thoughts are, I could downsize and buy two properties, which would reduce my monthly living expense by 1) a smaller primary note and 2) income from the MF offsetting a portion of the primary note, and at the same time I would be able to pull the equity I have built up in my current home, plus my current cash on hand, to further invest after the dust settles. Also, note that I am pretty young, have a good/stable income from my primary job and great credit.

So I have a few questions on how I should think about executing this from a timeline perspective and also ask what you would do in this situation?

To purchase the MF (FHA) would I need to sell my FHA home prior, or can I purchase at the same time as the sale or even before?

Would I need to buy the second property (apt/townhouse) with 20% or FHA first, then sell my current house, and then purchase the MF FHA?

Should I try to BRRRR this MF property and refinance it with my FHA, or better to purchase turnkey? And I guess the same question goes for the apt as well?

I have the idea down, but just a little caught up on the sequence of events, and also throwing the BRRRR in there adds more complexity, given that would take more time and also would be my first project of that scale, but could save cash outflow.

Any advice and input would be greatly appreciated, thanks in advance!

Thanks, Chris