First Investment ~ Deferred Gratification

[Account Closed]

Hi all.

My Fiancee qualifies for first-time home buyer program and we are pre-approved for FHA loans (including 203k) which puts us in a good position to buy before December 1st of this year (not far away). We originally began looking at homes that we could "grow in to" and that were "perfect" but I soon realized that despite the market downturn, my current J.O.B. doesn't provide me with the funds necessary to get a pimp pad. So I actually started to use my brain and realize that I'm only 23 4/5 and that I don't need the best of the best right now.

So here is what I need help with...

We've decided that (if it can workout) we would like to purchase (or invest) into a multi-family property that will still qualify for the $8000 tax credit. My intentions were to get a vacant, under-valued off campus home that is setup for 2-3 units but that would be believable that we are treating it like a single family unit. While being in the property we would live there, fix and update the other units and stay in the nicest one.

My question is, do you see any problem with this basic summary of the idea and SPECIFICALLY, how long will I need to live there as my primary residence before being able to RENT OUT (not sell) the other units.

I'm hoping someone says I could buy, take credit, live as primary residence while fixing and then rent after 1 yr. and not have to pay back the credit. Besides, students need affordable housing here...

EXTREMELY interested in getting thoughts from the experienced or preferrably a CPA.

Thanks,
Josh :lol: