How do you feel about a $700k purchase price with a non owner occupied 4plex DSCR loan 3yr prepayment penalty, 10yr interest only 30yr fixed after$560k loan amount (20% down)7.750 par rate with no costs. monthly payment $3,616.66Or pay $22,295 in closing costs and get a 6.375% Monthly payment of $2,975The monthly payment difference between the two is $641.66And when you take $22,295 in closing costs and divide it by $641.66 that will give you 34.5 months (2.89 yrs) to break even if my math is correctHow do you guys feel about taking a lil less than 3 years to break even on $22,295And the seller is giving me $15,500 in seller concessions thanks for the advice guys!!

If you are, I recommend buying a small multifamily and house hack to reduce your largest living expense while building equity.I recommend talking to a lender (i can connect you with one) about the income fluctuation and see how much you can qualify.Your best bet is to get a owner occupied loan with 30 yr fixed rate.

The downside is that usually the rate is a little higher than a loan originated in your personal name as it is a non-residential style loan on a non-owner-occupied property (investment property loan).

This is not an option  for your Columbus or Detroit section 8 occupied single family home.  

Are you planning to owner occupy? 

Checking in with the BP public on this...wife and I just bought and moved into a SF this May at 6.812% and the monthly payment (4319 all in) is pretty painful. Put 10% down on a 650k sale price. PMI is surprisingly ch...

I'm unsure what the right path is, but I've been reading about investing in owner-occupied, multi-family properties.

Also as a sidenote I assume you are lending on non owner occupied homes - never lend on an owner occupied property.

@Yaumari Gonzalez your #1 challenge will be retraining your brain on how to make offers on rentals.Owner-occupied transactions are mostly EMOTIONAL based transactions.Investment property transactions should only be BUSINESS transactions - no emotions!

I run about 80% occupancy but much of the time I am 100% occupied.