All Forum Posts by: Jeff Puciato

I see you are in CT. So am I. I am closing on my second multi in 2 weeks using Charter Oak. They allow as little as 5% down for owner occupied up to fourplex, and it does not need to be your first property, but they only finance properties in CT and RI.

@Jeff Puciato..might be worth looking into a DSCR loan, depending on how many units you're buying and if you're okay buying for investment vs living in one the units (if 4 units or less). I've done investment/DSCR deals in New Haven, CT and the market is great from the little I know about it. OR you could call around to local banks/CU's and ask how they underwrite. Sometimes banks might collect a full document package, but really when it comes down to it, are only underwriting the property (if you're buying for investment). I have had this happen also with other clients - where we HAVE to collect everything more for a compliance edge vs. your personal income actually taken into account. Just my $0.02

Option 2 is definitely possible. Lots of house hackers aim for this, so they can keep using FHAs to build their portfolio.

Given the current market dynamics, your forced appreciation may not work out as well as you're hoping. It's just hard to do when values are declining/stagnating. I think it's still worth a try though. 

Good luck!

It depends on your specific financial situation and investment goals. If you are able to afford the monthly loss of $600-$700, and you are comfortable with the risk of potentially not being able to rent out the third unit for a year, then it could make sense to owner-occupy a 3-unit property.

There are several potential benefits to owner-occupying a multi-unit property. For example, living in one of the units allows you to keep an eye on the property and be more involved in the day-to-day management of the rental units. Additionally, owner-occupancy may help you qualify for certain loans or financing options that are not available to investors.

It is also important to consider the long-term financial potential of the property. If the property is in a desirable location with a strong rental market, and you are able to rent out the third unit at a profit after a year, the property could be a good investment in the long run.

It's important to consider all aspects of the investment and to consult with a professional such as a financial advisor or real estate agent before making any decisions.

Does it make sense? Most likely yes. Is $600-$700 less than what you'd pay in rent for the same unit? Lower than average rent plus building equity over time equals a no-brainer! 

An extraordinary decrease in home values is always possible. No one knows when a black swan event will take place. Is there something about your area that makes it especially susceptible to a decrease in values?

What is the price point of this deal? 'Overpaying' by $20k on a $1,200,000 fourplex is not a big a deal. Even overpaying by $20k on a $400,000 fourplex is not that crazy, assuming the property is in an 'A' location and you plan to hold long term.