Investment Property – Another Way to Build Wealth

4-plexDid you know you can buy a multi-family residence, up to four units, with an FHA loan? That’s right. The only stipulation being that you intend to live in one of the units.

For an owner/occupant investor who might be limited on funds, the 3.5% FHA down payment is fantastic! And if the other units already have tenants, the lender will even factor those rents into your loan qualification.

For example: Say you wanted to buy a $500,000 4-plex. Instead of the usual 20% down ($100,000) as required on so many commercial loans, you could buy this same $500,000 property with an FHA loan at 3.5% down, or $14,000, so long as you intend to occupy one of the units.

chaplainI once had a buyer who was a hospital chaplain; had a small inheritance he could use for a down payment, but his monthly income was very limited; so qualifying for a mortgage on his income really limited his home choices.

So we switched gears. Instead of a house, I was able to find him a really nice 4-plex. Because three units were already rented, the lender counted those rents toward my buyer’s income. In fact, the other three rents actually covered his monthly mortgage note. So he was able to ‘bank’ his own ‘rent’ each month to build a cash reserve; perfect to cover things like a periodic vacancy or major repair.

But the ‘wealth’ part is that over time, as property values go up, so does your net worth. And we all know that rents consistently go up, not down… meaning income that keeps up with inflation. So call me if you want help finding a multi-family home to start building your own personal wealth.

About Joyce Albert

Why you need a Real Estate Consultant, not just another Agent… The difference between a real estate agent and a real estate consultant is the difference between someone who just wants to make a sale, and a professional who is willing to share with you their in-depth knowledge of the market in order to help you navigate one of the largest financial decisions of your lifetime. In my career as a real estate consultant, putting my clients first is the hallmark of my success. So if you are looking for a true professional to help you buy or sell a home in the Greater New Orleans Area, please contact me. I look forward to woing with you. Certified 203k Specialist I am a certified FHA-203k Specialist - a program designed to assist buyers wanting to purchase distressed properties (hurricane damaged, repos, short sales) that require repairs or major rehab. Accredidations -  Accredited Buyer Representative (ABR)  e-Certified  Short-Sale & Foreclosure Certified (SFR) Other Memberhips. . .  Louisiana Association of Realtors  New Orleans Metropolitan Assn of Realtors (NOMAR)  Gulf South Real Estate Information Network  National Assn of Realtors (NAR) of Realtors (NAR)  Real Estate Board of Accredited Buyer Consultants (REBAC)
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