Our mortgage brokerage works with real estate investors all across the country who face these same decisions regularly.

🏡 Real Estate Market Report (Single-Family Homes)📊 Mortgage Rates:30-Year Conventional: 7.10%30-Year VA: 6.45%💰 Median Sales Price:October: $485,000November: $484,995December: $484,500📈 New Listings:October: 1,959November: 1,498December: 1,175📅 Median Days on Market:October: 22 daysNovember: 24 daysDecember: 29 days📦 Months Supply of Inventory:October: 3.3 monthsNovember: 3.2 monthsDecember: 2.7 months🤔 What Does "Months Supply of Inventory" Mean?

Forewarning: This is going to be long and detailed.How this started:When we were young, we would buy a house that was livable, but in need of rehabbing, move into it (which allowed us to get a low interest residential mortgage), then rehab it, using contractors for what we couldn’t do ourselves.

You may be able to deduct mortgage interest and property taxes before the property is in service. 

You are looking at this through the lense of cash flow, don't forget you are also paying down the mortgage and might see some appreciation, so equity growth might be more than cash flow.

Credit score shouldn't be the primary driver of tenant approval, because if they could qualify for a mortgage they probably wouldn't be renters.

The Fed rate cuts will eventually help bring down mortgage rates.

We are experienced and have never involved anyone in our projects and have never used a loan outside of a conventional mortgage.

I’d love to take advantage of a “traditional” mortgage (or even FHA?)

When you go to sell, Montvale requires a certificate of occupancy so this issue has to be resolved in advance of a sale.Although I am not a lender, I assume you will not be approved for an owner-occupied mortgage on 5-units if it is a legal 4-unit without some type of mortgage fraud whether in reported rents, units, or another legal document or representation (very very large issue from a legal perspective with multiple arrests in the last year for anyone playing fast and loose).As far as the DCA, I would recommend coordinating your work with the city with the DCA.