All Forum Posts by: Peter Bizios

I've been recently focusing on purchasing a cash flowing 3-4 multifamily property using an FHA owner occupied loan. A lot of the properties I'm seeing, mostly only two flats available, either don't cash flow or require massive renovations. I was wondering about the following:

What are the benefits of building a 3-4 unit property over purchasing an existing building?

What kind of financing options are available through this type of build? Does FHA do multi units? Are interest rates and down payments usually higher for new builds? Do these loans also cover architectural drawings, city permits...etc?

Are the cap rates/ROIs about the same when comparing new builds to existing?

I’ve only done the traditional buy and renovate on a couple single family homes; my knowledge of building from scratch is limited. Any insight would be greatly appreciated.

@Christopher Smith

I appreciate your thoughts on the topic. This was our first year of engagement and the ownership is a straight forward 50/50 split. This CPA only prepared our K-1s, nothing with personal. I have reached out to a couple other Individuals for pricing.

@Daniel Hyman

Thank you for responding. I have reached out to a couple other CPAs to obtain pricing.

@Ahad Ali

I appreciate the insight. I’m currently waiting to hear back from a few CPAs.

Depreciation*

My business partner and I received a bill for $3,000 through our CPA for filing k-1s on three properties in 2019. I wanted to get a second opinion on the bill before using them again on our 2020 returns. Does this amount seem fair for three single family homes? We do straight line deprecation, no cost segregation, and all other expenses/income are pretty standard. Our books are not off the walls crazy or anything. Any thoughts would be greatly appreciated!