Clark Fulton triplex- WHAT AM I MISSING

[Dan Keefe]

Hey everyone,

So my first prospective property is going to be a house hack via a triplex (205k) in the Clark Fulton area as close to Metro Hospital as can be without sitting in the ER waiting room.

With my lenders quote (I'm using FHA loan) on interest rates and mp as well as the BP rent calculators I should be breaking even with 2 of the 3 units. My plan is to refinance after 12 months to a conventional loan and rent out the 3rd unit, possibly as a MTR for greater cash flow d/t proximity to the hospital.

For people in the Cleveland metro, is there any red flags with the Clark Fulton area that are more under the radar? Head aches with triplexes? Any red flags with this plan that more seasoned investors can point out is greatly appreciated. 

Thank you.

[Dan Keefe]

Quote from @Ryan Thomson:

@Dan Keefe why not start with a conventional loan. They just changed the rules and allow 5% down on Triplexes again!

Another reason I suggest that is because refinancing in a year will require a lot of cash from you. Appreciation will not be enough in one year for you to refinance that as an investment property at 75-80%LTV. You'll be stuck with the FHA and the PMI until you have 75to80% LTV or bring the cash to make that true. PMI is not that big of a deal for a couple years but if your plan is to refinance in a year that will be difficult or take a lot of cash on you end.

Hey Ryan,

The Head House Hacker himself!!!
I actually did change to a 5% conventional to get under contract for a triplex in Cleveland Heights. That’s great insight about the FHA. I think due to the new 5% loan product I’m going to save the FHA for a single family project as there were too many good deals I was missing out on due to the stricter FHA regulations.
thanks for posting boss!