Financing For Duplex/multifamily Vs SFH Of Same $$
My husband and I are looking to start REI during the next 6 months when we relocate. Instead of purchasing a single family home when we move, we were thinking we would purchase a duplex or small multifamily (up to 4 units). We would live in one of the units and obviously rent the others.
My question is... Is there any difference in us getting financing for a SFH vs an investment property if the dollar amount is the same? For instance, we could buy a house for 200K or we could just buy a duplex for that amount (and then actually have additional income to report). It seems simple enough to me, but is it? :-?
if you do not mind CLOSE neibors, then the owner occupied property is a nice option to go.
income over time, they may make most of the payment,
you can get more funding options with the owner willing to occupy, less down money Ect...
Most banks consider 1-4 units a SFR. You still qualify as a Owner Occupied since it is your primary residence. So go for the gusto let the tenants pay your mortgage
You will have a slightly higher rate and possibly a larger down payment. It is pretty much the same process. I'd lock in a decent owner occupied rate, move into the apartment for awhile, and then move out when you find a house for yourself!
This way your intent is to owner occupy the property and you can lock in a cheap interest rate.
Thanks for all of your great responses. I don't mind the proximity to neighbors since I know it will be short-term. Will my rate stay locked in if I decide to move out after a year but retain ownership of the property?
If you get a fixed rate mortgage, it will stay fixed. I'd probably go with a 30-year fixed rate.
GOOD LUCK