Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

Buying something completely vacant, 50% occupied, fully stabilized??

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

You will have to occupy it initially to get an FHA loan.2.  

Issue I'm having is that it is currently owner-occupied so no rental history.  

Live in a 24 unit building that is 50% owner occupied. 

I believe my best option so far would be to use an FHA 203 loan for my first triplex, build it up, live in it for over a year or two, save up the rental profit, see how much equity I will have in that time frame and then see if I can pull out that equity for a down payment for a second triplex that I will occupy.

Like Bill said, though, big difference between a private loan and doing lending as a business, there are some pitfalls, especially if you get into residential owner occupied stuff.

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.Download BP’s newest book here some good due diligence in Chapter 10.

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.Download BP’s newest book here some good due diligence in Chapter 10.