It’s February of 2018, and many potential buyers are inquiring about purchasing multi-unit properties. These buyers see the opportunity to supplement their income and decrease their housing expense by receiving rental income from a second unit. It's an interesting plan!
The FHA route provides a fantastic option because it allows you to purchase up to 4 units with as little as 3.5% down. This is worth repeating, you can buy 4 units for 3.5% down! The Fannie Mae loan limits are higher for multi-unit properties too. The limits vary by county, but here in San Diego, you can put 3.5% down on a 4 unit property that costs over $1M dollars!
Multi-unit properties give buyers the opportunity to have a more manageable housing payment because of the rental income they receive. Buyers can also rehab multi-unit properties with a renovation loan, and then increase the rents!
FHA 203(k) loans for multi-unit properties provides a very interesting opportunity for new buyers to not only buy a primary residence, but also get their foot in the investment game.