Owner occupy affecting next move: FHA/conventional/hard money

[Alex Thiel]

Hi, I have been browsing through pages and pages of the forums and not seen this specific type of scenario. Any input is appreciated.

I have identified a great deal for a house that could serve as our "forever home" (if that's a thing, moved 4x in 4 years, lol) I have financing through a hard money lender to buy my next property but have to create an LLC in order to hold it. House needs substantial amount of work which I can do but is habitable.

6 months ago I bought a duplex with an FHA 3.5% down loan and currently living in 1 unit and renting other unit out. I know I need to live here for a year to satisfy owner-occupy clause. This is my 3rd owner occupy loan (also have 2 SFH with VA loans)

I am able to buy the house with HML, do interest only payments, and perform work on it for the next 6 months and move next year when work is done, and they have a program to convert the loan at the end to a 30yr fixed mortgage. HML also finances 100% or rehab. But I am holding property in LLC and then moving into it. A common question I see is can you charge yourself rent, this is not what I am after. I don't need to charge myself rent, The HML just requires house to be purchased in an LLC. But then I'd be living there once the work is done. Is there a downfall to this scenario?

Alternatively if there is a way I can justify it to an underwriter maybe can get a conventional owner occupy mortgage, I wouldn't be opposed to that. I could move my family into the house within the normal 60 days to satisfy that and stay in my duplex for 6 months myself, and finance the repairs myself at my convenience. Then I would be holding title myself with no LLC.

Either way I can afford the house + duplex mortgages for 6 months.

Any input on this would be appreciated. Anything maybe I’m forgetting or overlooking? If I had lived in the duplex already for a year it would be an easy answer for me but I just want to make sure I’m operating within the scope of the law, but also get this house.

Thanks,

Alex