All Forum Posts by: Torhi Joseph

@Wayne Brooks

Hello Wayne,

Thank you for your response.

@Greg Scott

Hello Greg, thank you for your response.

Yes, you are right. We are looking for less than 4-units. If the FHA appraisals for small multi families are not based on the income generated by the property, then yes they are definitely shooting themselves in the foot by eliminating a large number of qualified buyers.

Hello all, 

I know 2020 is making it tough, but I truly hope that you all are in great health and spirits!

This is the situation:

I am a Real Estate Agent here in Tampa, FL, and I am working for a fellow BP member in order to help him find a multi-family residential property that he can house hack. We have found many great options so far, but found that our options for MFR have been limited because sellers with properties that would pass FHA requirements are not receptive to FHA offers. I spoke to a listing agent on one of those properties, and it was explained to me that they do not accept FHA offers because appraisers will not use all of the property's potential income (due to it being owner-occupied), and thus an FHA Appraisal will fall short of the sales price.

These are my question:

1) Will an FHA Appraiser always use an Income Approach as opposed to a Sales Comparison Approach to evaluate a multi-family residential property?

2) Provided that the answer to question 1 is yes, will an FHA Appraiser really only use one unit to generate a valuation?

Thank you in advance!

Torhi Joseph

Investment Info:

Single-family residence buy & hold investment in Riverview.

Purchase price: $201,490
Cash invested: $16,000

New Construction home in a developing area.

What made you interested in investing in this type of deal?

The plan was for me to be able to afford the property on my own, but still house-hack so that I can save as much money as possible. This first home will then become a full rental when I move into my next investment property.

How did you find this deal and how did you negotiate it?

The model home was listed on the MLS.

How did you finance this deal?

Through a conventional loan.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was the Real Estate Professional on this transaction, so of course I do recommend myself!