Up to 2 families ( difficult to get a loan for more with the self-sufficiency test ).

Where population growth is stagnant or falling, the current housing supply is sufficient so there is little increase in prices.

If an investor does not qualify as a real estate professional and makes over $150k in W2 income any passive losses are carried forward, so they'd pay no tax on the investment income and have a carry forward to be used in future years as long as the depreciation is sufficient to wipe out investment income.

Usually that’s more than sufficient. 

i know you have to meet the self-sufficiency test when it comes to the rental income.has anyone else ran into any other challenges with FHA on a 2-4 unit in California?

instead, if you have sufficient rental properties to have enough passive income to cover your expense, you can live freely doing whatever you'd like :) That was long, but hopefully it'll be helpful to someone!

Main take aways: 5% down on 2-4 units No income limits No self-sufficiency test Primary residence required No first time buyer requirement Minimum credit score: 620+ and must also pass through automated underwriting system Reserve requirement: Based off automated underwriting findings Maximum Debt to income ratio: Based off of automated underwriting findings (expecting this to be 45%-50%) Loan limits: 2-unit = 929,850 3-unit = $1,123,900 4-unit = $1,396,800 Refinances: Clients can now also refinance on a conventional mortgage of a 2-4 unit with only 5% equity.

The reason why many here recommend you do an automatic co-signer for students is because most applicants in this category may not be able to meet the minimum criteria due to a low or no credit score, lack of sufficient income or no previous rental history.

It would be like me going to a MD having tests run and the MD issues a diagnosis and then me going to Facebook to get other medical opinions  😀The three years of income and expense is not a sufficient data set to determine the answer.One needs to specifically look at what generated those losses in 2020 and 2021  If the $22,600 loss in 2020 primarily arose from depreciation and you were able to use those losses in 2020, your basis in the property will have been reduced by the amount of the depreciation.

Ideally, the properties would only need light cosmetic rehab, primarily in lower crime areas with a sufficient demand for rentals, preferably C+ or above neighborhoods.