The Home possible program from Freddie is one of the programs that was restricted in the past due to income limits but the limits are being revised upwards which will allow more people to utilize freddie's HP to finance a 2-4 unit property with 5% down on conventional.The advantage of HP is that it has lower monthly MI, its conventional financing so not as restrictive as FHA (which can also work for 2-4 units with 3.5% down payment), HP does not require you to meet the FHA SS rule (required on 3-4 unit FHA financed properties).I've seen freddie's income limits go up about 10-20% this year for 2021 so that might allow more people who are looking to "house hack," to utilize this program.HP only allows max 2 financed or owned properties total so its a perfect for someone starting out to house hack.

This project took a little longer than expected because we did an oil to gas conversion which took about 8 months for utility to bring gas to the house.

The tenant was responsible for utilities and lawn care / snow removal.

I’m going to be utilizing a 1031 to acquire this property.

NNN leases typically have the tenant reimburse the landlord for taxes, insurance, utilities, repairs/maintenance, management, and roads/grounds maintenance in my Texas market.

I analyzed this deal assuming that I would manage the property, the tenants would pay for utilities, and I would put 20% down and get a loan for the rest.

If you keep the property, be sure to get any utility and tax bills transferred to an address you can receive them at.

I’ve also split the utilities so each side will pay their own.

Does your rental include utilities?

Category 2, you can afford some loss but the cash flow and utility is what matters, not the ultimate value of the home.