I literally think of loan sharks or getting your house or assets taken away from you when I hear it LOL.What does points mean?

Anyone in NWA looking to house hack a 4plex?

There is a small (<600 sf) house on the lot currently, which is in pretty rough shape. 

@Derick Jennings Without knowing more about your situation, I'd likely recommend a house hack, a strategy I wish I would have known about when I got started.

After the new home is built, I plan to sell our primary house.

@Abby H.Shifting from house hacking to small multifamily is a great way to scale, and securing a JV partner is all about networking, credibility, and structuring a win-win deal.

In your case of a fourplex, option 2 should get you a better deal.I would also agree with Bill on how the number of units may not correlate with the value of the property unless it is a large multifamily complex, and sometimes a fourplex or several single family houses would give you better returns. 100% We always recommend conventional first until you can no longer qualify for those. 

Get a small MF you can house hack and start that way.I'm not an expert on the auction scene, but, from what I have read, that is a challenging first step into investing. 

House gets foreclosed on when a borrower is not paying its debt obligations - typically its mortgage.buying foreclosures is not for the faint of heart as you have no idea of the interior of these properties lastly while it can be beneficial also realize if there are a lot in an area those homes are the new comps when trying to sell so it lowers home values in an area 

I went from growing up in a hut in Vietnam and spending my early years in Section 8 housing in the U.S. to now owning four cash-flowing properties (8 units) across three states.