Multifamily investing detroit

[Jamary Taylor]

Greetings everyone my name is Jamary. Currently an Engineer, 2 years out of college and I am tired of renting. In the next 12 months I would like to purchase a 2-4 unit multifamily in Detroit and live in one of the units. Just joined to gain advice and hopefully network with other investors in the area.

I have minimum real estate experience but my mother has flipped 3 homes in the last 5 years. I have gotten pre—approved for an FHA loan with 3.5% down ( max 2 units) up to 300k ( I have really good credit ).

Should I be worried about PMI cost with FHA loan ? Also shouldn't FHA loans be 4 units max or it depends on the lender ?

Look forward to networking with you all 😊

Stay Safe,

Jamary

[Drew Sygit]

Detroit has a decent amount of 4-plexes, but not many are on the market at any given time.

The max number of units FHA will lend on is 4 units and you must owner-occupy one of the units inthe property for a minimum of 12 months before renting that unit out.

There is no PMI on an FHA loan, it's alled MIP and is mandatory with preset percentages - so shopping lenders on MIP terms is a waste of time. Some lenders won't lend on 3-4 units for FHA, but most do duplexes. You can shop on the interest rate.

FHA also offers a 203(k) product that will include repairs in the purchase mortgage. Not many lenders do these, but we know one of the best in Michigan:)