HOUSE HACKING IN SACRAMENTO, PREAPPROVED WITH FHA & CONVENTIONAL

[Abe Rouz]

Hey yall, 

Was just out in Sacramento recently exploring the area and have an idea of where Id like to invest primarily north of sacramento, given better areas/schools/safety and close to university and hospitals

Goal is to live in one unit and rent out the rest, rinse and repeat

Where would you recommend investing in multifamily?

How does buying your first place of residency with an FHA and/or conventional loan impact buying your second place and so on so forth

What do you need to qualify for a 3-4 unit multifamily with FHA? how does that differ with a conventional loan?

Hoping to find a place in the next 3-6 months

Any guidance on the process, education, blindspots would be great

Appreciate it, hoping to connect with others on a similar journey!

[Kevin G.]

Sacramento has a great selection of multi family units so you have a good location picked out right there. I would suggest anywhere in Sac that you can find a good deal on a duplex or triplex to go for it. When using an FHA loan for house hacking I believe they will calculate up to 75% of the income you'd make for each unit. You're able to use this income towards your own to increase your buying power. Since your target is 3-6 months I would start talking to lenders now so you can be ready. This usually takes the longest as you need to find one who is familiar with FHA loans, house hacking, etc.

You could also consider using a 203k loan which is similar to the FHA loan but allows you to finance the renovations into the purchase price.