Sell my primary house and buy a rehab multifamily and live there

[Jay Yoo]

Hi All.

Ive read Rental Property book from BP twice. After reading the book for the first time, I was thinking to get heloc and invest single a family home long distance and apply BRRRR strategy to start my journey but there are a greater risk to face such as finding right contractors and property managements from long distance. Im in Seattle and there are no property I can plan my strategy in this market.

However after reading the book for second time and listening many BP podcasts, multifamily investment is a way to go instead of single family homes.

Apology if I use too much words here and there may be some REI terms but

What if I sell my primary home and buy multifamily units to move in with myself and my family, and rent the rest units?

Then I will be able to get a conventional mortgage with lower rate since it’s not investment.

Currently I have $450k mortgage and equity for the home is about $250k.

With $250k, I should be able to put downpayment for multifamily units in a high priced like Seattle and move in there.

This way I may be able to get the all benefits as primary residence and mortgage and rent it to cover the monthly payment.

So how do I come up with math that I need to set the pricing range for a multifamily units?

BRRRR is basically stating that I need to buy a property 80% of the listing pricing. There are literally no property you can buy lower than listed price in Seattle period. I would be grateful if someone gives me insights so I can take an action. Thank you.