Securing duplex with HML then refi

[Steven J.]

So I'm going out to look at a duplex today I'm interested in. My initial plan is/was to secure it with FHA loan with a 203k to fix up the repairs needed. I'll live in it for the required time while renting out the other unit. Then when I move out I'll rent out the other unit.

After having watched @Brandon Turner 's extensive seminar on how to analyze a multi-family property, I am more inspired to secure the property with HML or private money so I can do a cash offer securing the deal at the number I need.

Here's the debatable question. Do I move in and owner occupy it right away? I'll be paying more for the borrowed money but I won't have rent payments I'm making. And then after my 6 months of seasoning can I apply for an FHA refinance loan? Is there such a thing? Or should I just continue renting myself and rent out both units of the property until I can refinance after seasoning?

I look forward to the wise words of those who have secured property in a similar fashion.

[Robert Steele]

Originally posted by Bryce Y.:

A HML (or private lender) will not lend to you if you intend to owner occupy. Also you cannot do a cash out refi into an FHA. If you cash out it will be minimum 6 months to season and only at 70% LTV for a duplex.

This is one of my favorite strategies for SFR. Get a HML. Rehab. Season for 6 months. Then refinance at 70-75% LTV (no cash out).

This is a much better strategy than having to put 20-25% down on a conventional loan, then another 20% for the rehab. Using this strategy I can keep my out of pocket to a minimum.