Hi BP Gurus / Seniors,I am new to the REI and placed an offer for my first multi-unit property.Here are the details.Area: Near by Shabbona Park, DunningNumber of Units: Legal 3Built: 1950Price: $455,000 ($450k (purchase) + $5k (Minor repairs: Nice to fix but not an immediate need))Loan Type: Conventional (20% down & 2.5% interest rate)Annual Gross Rent: $38,400 (Tenants pays Electricity + Gas)Annual Expenses (Property Tax + Insurance + City utility): $10,000Parking Space: 3 (Garage – 2 & Side Pad – 1)Other details: Exterior Brick, free laundry in basement, all units occupied and it is a turnkey property.Pros: Steps away to CTA Bus Stop; Good Elementary school (PK-8); Walkable to Shabbona Park Recreation, Restaurants and Grocery Stores; 10 mins drive to Schiller Woods; 15 mins drive to Airport & low crime to visit the property any time confidently.Cons: Below average High School & 20 mins CTA Bus to Blue Line.My Situation: I will be in Chicago area until next Summer and relocate to Texas.

All of the lenders I work with on a normal basis tell me I need to have 2 years of commission pay to qualify for owner occupied loans. 

BankRI will do 5% owner occupied even if you already have a multifamily.

Long story short, using Freddie Mac....or Fannie Mae....you can choose to pay a fee of 2.125% of the loan and receive the same interest rate as you would if you were buying the property owner occupied. 

Bigger Caveat: I plan on owner occupying in order to get this with an FHA loan.

Recently I have attended a couple of auctions where apartments that need significant rehab are being bid up to near ready to occupy units. 

This has been as a courtesy but in the lease agreement clearly states extermination of insects and pest while occupying the property is the tenants’ responsibility.

Great off-market opportunities to owner occupy, flip, or buy and hold.

You want to have a lot of renters looking for property to rent rather than most homes owner occupied.  

Be prepared for it to be a solid 30% more expensive than a standard tenant occupied landlord policy.