Florida Four Plex House Hacking

[Summer Shelton]

Looking for some advice on purchasing a four plex. 

Currently in the process of selling our property in missouri and looking to purchase a 4 plex in Florida. 

We found one for the price of 1.9 million. And really want to know if it would be feasible to purchase the property given some circumstances. 

We want to use a FHA loan to purchase the property. We meet the standard qualifications for the FHA loan. However the monthly mortgage is potentially 12K a month. I work full time but don't make that much per month. We would use the additional units to bring in the funds to pay the mortgage plus expenses. Plus we will have Capitol from selling our house that would be enough to cover a down payment and 6 months of payments.

My question is, typically do banks lend on primary/investment properties with such a high price? 

I understand there are alot of circumstances and it would come down to the bank. But looking for some feedback from anyone who has done a simialr deal.

[Jason Wray]

Hi Summer,

I have been here in Florida for over 35 years and there is currently No County that allows for an FHA purchase of a 4 unit for $1.9M. Key west offers the highest of $1,786,950.00 and Naples-Marco Island slightly above $1.4M. Most other counties are around $985K with some around $1.1M

You can check the county you are interested in on the FHA Mortgage limit website. entp.hud.gov

You also want to make sure you run the math to ensure it passes the "Self Sufficiency" test where the unit rents must support the PITI by using the 75% and vacancy calculation. There are calculators online but make sure you are familiar because I get a lot of people call me because their loan officer failed to run the numbers and they are getting ready to lose a deal or earnest money.

If you want to go FHA you can always put more down but I would take a look at Fannie Mae as well for High Balance areas.