Duplex or sfh w/ tenants..

[Brandon Blessed]

Happy Memorial Day to all who sacrificed for this Greatland each and every day past and present. I got approved for an FHA loan. (1st time home buyer) I know I'll have to live in this property. I founded 2 multi family properties I'm interested in but are tenant occupied. Can I purchase a duplex or sfh w/ tenants, using an FHA loan? If so upon closing the tenants have to move out or how would that work?

[Kevin Childers]

You can purchase either. A FHA loan is good for a sfr, duplex, triplex or 4 plex, as long as it is your primary residence for a year. I would lean toward a multi mainly because you can rent the other unit(s) out to cover most, if not all, of your expenses on the property. This will allow you to save more money faster for your next property or pay down debt much quicker if you have any.

As far as the inherited tenant(s) go, I would ask to see current signed lease(s) and read through them. I'm not sure if you can put a clause in your contract stating that the tenants have to vacate upon you taking possession or not.