New Construction Fourplexes in or near San Antonio

[Bradley Garza]

I am in search of a multifamily property to perform my first house hack. I have recently discovered a few things along my journey. My lender informed me that FHA guidelines require the projected rental income for triplexes and fourplexes to cover the entire mortgage. This is including the 25% percent rental deduction for projected maintenance, repair, and vacancy fees. Essentially, the rent from my tenants, excluding mine, needs to completely meet the mortgage amount. This is something I did not know and has narrowed down my search criteria. This has led me to either properties in great distress or new builds. From my analysis, properties that are in between these two opposite sides of the spectrum are not meeting the rent to mortgage ratio. My agent and I have contacted some builders but most new construction triplexes and fourplexes are out of my price range. I am hoping to find home builders in or near San Antonio that are constructing multifamily properties for around 575K or below. If anyone has any contacts or information that they would be willing to share, it would be greatly appreciated! Thank you!

[Mike Wood]

@Bradley Garza I think your lender is giving you bad information, and would suggest talking with another lender. If you have the income to support the purchase, FHA does not care if rents cover the mortgage. But as you mentioned, they will limit the amount of rental income that can be used to support your debt to income ratio.

I doubt you are going to find any deals on a fourplex that meet your mentioned criteria, multifamily is just too hot right now. I also question why your lender thinks you would pay rent to yourself, its FHA, which requires you to owner occupy the property. Start looking of a new lender.

I also doubt that you will find new construction for less than existing houses, since you are using FHA, which would require the builder to completely fund the project and sell it to you once complete, you will most definitely be paying full retail price on the property.