How to Buy a Multifamily Rental Property with 3.5% Down

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How to Buy a Multifamily Rental Property with 3.5% Down

Рет қаралды 160,686

Күн бұрын

Pay off your mortgage in 5-7 years with Replace Your Mortgage:
replaceyouruni...
You can buy multifamily rental property with just 3.5% down. That’s right. No more 20% down requirements; you can get into a cash-flowing property with just a fraction of a traditional down payment. Or, maybe you’re struggling with how to buy a house with today’s high down payment standard. Well, you can use this SAME method to get into a single-family home of your own. But you’ll need to know what it is and how it works.
If you’ve read this far into the description, you’ve probably guessed that we’re talking about…the FHA loan! That’s right; this time-tested, low-down-payment-required home loan can help you get into your first single-family or multifamily house hack for FAR less than you think. But what’s the catch? Before you get TOO excited, watch this ENTIRE video to know exactly what you need to get into this absolute steal of a home loan program.
Want to hear about other home loans? Take the poll below and let us know:
Pay off your mortgage in 5-7 years with Replace Your Mortgage:
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Should You Start Investing With an FHA Loan? Here’s Why… Or Why Not:
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00:00 Intro
01:36 What is an FHA Loan?
03:01 Credit Score Requirements
04:12 Debt-to-Income (DTI) Requirements
05:00 What You CAN'T Do With an FHA Loan
08:39 The "Golden Handcuffs"
11:33 The "No PMI" Lie
12:49 The FHA Wrap-Up
14:15 Connect with Christian and David!

Пікірлер: 157

@jonathangamble Жыл бұрын

you need more videos on real estate risks, how to save retained earnings, where refinancing can be dangerous (with numbers and detail), and how to grow the right way... in fact, it should be a series

@ritamc90 Жыл бұрын

I would love that too!

@Touchatt 10 ай бұрын

I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.

@jonathanmcintosh1969 9 ай бұрын

@@Touchatthi how do I contact you?

@thevaynenetwork2575 Жыл бұрын

Bank of America offers 5 percent down for a duplex convention option

@KrystalLatrese 3 ай бұрын

Thank you for sharing this

@idkmybffjill9682 19 күн бұрын

Seriously thank you, only reason I clicked on the video

@MicahWotring Жыл бұрын

Exactly what I needed!!! I've watched over 10 hours of FHA videos and this one explained things most of the gurus skipped over. Bigger Pockets is the BEST. Thanks guys!

@ATFstein Жыл бұрын

Boom first! Love this channel I live in San Jose and I’m tired of making printed circuit boards for a company that won’t give me a raise while they spend 10 million dollars upgrading their equipment in the last 6 months.

@chriscovarrubias213 Жыл бұрын

This video helped me a TON! Currently in the process of buying a multifamily on a FHA loan and this info was GOLD! Thank you guys 💪

@legiterneyy 9 ай бұрын

Hey congrats on buying your multifamily home, I’m currently in the process of buying one myself (4 Unit) (1.2m) multifamily, thinking of using a FHA loan for this. Any suggestions or ways to get approved with what you went through already on your process?

@tellasnichols805 Жыл бұрын

Literally broke down my game plan but I didn’t know all the details so thank you 🙏

@karlfriebel744 Жыл бұрын

Very informative episode. Please breakdown DSCR loan for small multi family.

@tacrewgirl Жыл бұрын

Great info. I didn't know about the self sufficiency rule or having to move at least 100 miles from current FHA residency to use it again. But like you said you could restructure your loan as a conventional and then use your FHA again if moving less than 100 miles between homes.

@roderickhorton7845 Жыл бұрын

Today I actually learned something very important.

@patelbv Жыл бұрын

I keep saying it, but we love mortgage Mondays! And like every episode, so much of that is relatable. I was a buyer in late 2015 when the lending laws changed that added that self-sufficiency on 3-4 unit properties. I was in the pre-approval process when I was suddenly told that I couldn’t get into the 4 plex in Long Beach because 75% of the rents wouldn’t cover the mortgage. We bought a duplex instead; and I feel like that’s the best option for first time home buyers in SoCal. FHA, 3.5% down, on a duplex. I also have the golden handcuffs; so I appreciate the conventional/5% down tip! It’s one of the options I’m looking at. So here’s the outside-the-box question: if you STR rental a duplex/SFR, for 2 years, does that help your borrowing power to qualify for a house every (other) year within 100 miles?

@DanKohan Жыл бұрын

I totally get the idea of using FHA loans to buy apartments and rent them out. The cool part is that you only need to put down 3.5% of the property's cost, which is great for starting. Great video!!

@vevasika Ай бұрын

My only thing is though your monthly payment will be pretty high if you put so little down plus the PMI as they mention and then the unknown of property taxes and it’s increases…so you’d really have to make sure your rent will be able to cover that

@ediemoll Жыл бұрын

How is it that I learn something EVERY TIME I listen to you guys?!?

@TJ-th9hw Жыл бұрын

Great content gents! I learn something new today “MIP”. Thanks for the video!

@Juansvq37 Жыл бұрын

This is dope, this was the product I was looking info on but only got so far, I know you guys went into depth a little but after you guys get done with the main real state products can you guys maybe double back and teach us more about this one. Also thank you for the knowledge it’s empowering being 22 learning how become financially free from elder folks who have done what you’re interested in. Keep up the good work and thank you again.!!!

@Touchatt 10 ай бұрын

I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.

@lailaatallah1857 Жыл бұрын

So helpful. Learning about the FHA loan in COMPARISON to a conventional loan was super informative. It’d be helpful to hear more use cases and how people with particular challenges can buy their first, second or third investment property. Which product can tend to help people with lower incomes? Which product might work for someone who has a high DTI after their first investment property, but wants to buy their second? How would someone who has a lot of assets but not a high income be able to buy their third rental property? Etc.

@tonyalutzTML Жыл бұрын

If still taking show suggestions: how to business hack with an SBA 504 or 7a? Not sure if this is a topic that could be considered because it’s lender specific. Please keep the Mortgage Monday show running, everyone learns so much from you guys!

@Touchatt 10 ай бұрын

I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.

@crypto_ai_v2 Жыл бұрын

Do some full videos on management companies virtual and non-virtual and what is a good percentage to agree on

@ivanr77 8 күн бұрын

Came here for multi-family info was baited into an FHA overview. Thanks for the 101 i didn't need.

@SeanLuc_Photo Жыл бұрын

Thank you for this info. As a current Gold Handcuff person, learning how I can get released from those cuffs was very helpful.

@Tanya401life Жыл бұрын

I would like to see more videos like this. Great content and guest!

@biggerpockets Жыл бұрын

You got it!

@JamMillion 3 ай бұрын

Very helpful I will be doing this when I purchase my first property

@rebekahcurtis538 Жыл бұрын

Helpful! Thank you….gave me some ideas for my primary SFH and FHA financing. Planning to buy a MF next but wasn’t sure what to do to free up the FHA. Located in AR and was one of Henry Washington’s students.

@biggerpockets Жыл бұрын

Great to hear!

@collierant Жыл бұрын

Can you explain the DCSR loan for MultiFamily since I can’t live in the four plex I want to buy

@christianbachelder8608 Жыл бұрын

This is on its way!

@Nohelygarza 9 ай бұрын

This is very helpful! I’m trying to understand more on how to make money with multi family properties/real estate I’m glad I found this channel!

@MrThyberg44 Жыл бұрын

Thanks for the great episode. Would love to hear more about VA loans!

@seamus203 Жыл бұрын

This video was helpful in a broad way. There are many restrictions on the types of properties that work with FHA, in my area especially (CT/NY) it seems sellers have realized that there are so many big-time buyers and investors in the market still right now, they no longer are willing to make any improvements or adjustments on properties, everything is selling on an 'as is' basis. This in turn rules out the possibility of using the FHA loan due to its restrictions. What about 203k loan option, which I believe is a variant of the FHA loan?

@tyjameson7404 Жыл бұрын

Give us another podcast on how many VA loans a veteran can obtain 🙌🏾🙏👏🏿

@wowwhydopplhavemyid Жыл бұрын

Thank you this is great..! kinda hard for someone like me who barely knows anything about realestate but excited to dig more into this. Thanks again!

@TEFgolfer11 11 ай бұрын

Very helpful! Christian is my favorite recurring guest

@tazeev Жыл бұрын

Your show is so good but I’m calling my bank tomorrow to see if they have an FHA loan. I can get this three Plex with. Thanks for all the great information.

@KilleenRealtor Жыл бұрын

Great episode! Perhaps an episode regarding VA loan and strategies to use that to its highest potential ?

@christianbachelder8608 Жыл бұрын

its coming!

@ProvocativeCrew 2 ай бұрын

You guys answered a lot of questions I was wondering about thank you

@devonscope6222 7 ай бұрын

The zooming in and out is killing me

@skarhead7597 16 күн бұрын

This isn't in any way important

@thatflywelshguy9662 Жыл бұрын

Can you guys cover the “replace your mortgage” since you guys are advertising for them? We looked into it 2 years ago but they were variable rates which I was not willing to do knowing how things were going (I was right about rates rising) and RYM also wanted a significant chunk to be a “member”

@christophercrossman6967 2 ай бұрын

I'd love to learn more about Construction Loans

@chibsryder Жыл бұрын

Love this episode, thanks David. I would like to see a video on low down payment options for foreign investors. As a Canadian, what are my options to buy a house using a low down payment + DSCR if applicable OR an option to buy a house without putting anything down because I got 20% equity in the buy. I need an institution that rewards getting properties with equity by skipping the down payment

@tammybooth5279 Жыл бұрын

You guys are awesome! I learn sometging new everytime I listen in. Thanks Again

@applesyo Жыл бұрын

Super helpful, going to re watch after work. Looking to buy my first house (duplex) so this helps a lot

@biggerpockets Жыл бұрын

Best of luck!

@MR-zf4rw Жыл бұрын

David, you always provide value. Love it man. Thank you.

@erikanoxid 10 ай бұрын

Very helpful!! I have never heard of MIP!! Thx for this GEM💎

@counterproof 8 ай бұрын

I would like to hear about a multi family loan where you buy the land and build a four unit property.

@americanfoundafilipina4832 Жыл бұрын

I contacted Christians company and I have been very happy with the service!!!!

@jaredcoburn4644 Жыл бұрын

Learned some valuable details. I really appreciate this type of video.

@matthewburkholder1076 Жыл бұрын

This is one of the best episodes ever!

@michaelburrell4685 Жыл бұрын

Great episode! Fantastic information always. Thank you @DavidGreene24 and @Biggerpockets. I would like to learn more about VA loans next. Specifically if you could partner with a veteran to get one on a property. My father is a veteran but I am not. Thanks again!

@adasanabria7022 11 ай бұрын

I just need to know more about having multiple FHA LOANS and more in depth as to how that works.

@cabinkingglampking Жыл бұрын

David Greene’s beard is on point! Lookin good!!

@happycappy9606 Жыл бұрын

I love this straight forward content! More of this please!

@seanwilliams4398 Жыл бұрын

This was INCREDIBLY informative. thank you for the breakdown

@biggerpockets Жыл бұрын

Glad it was helpful!

@stevenyoo4648 6 ай бұрын

Great Video, will you guys make a video on the new FannieMae product? the 5 Percent down on residential like 4 plexes?

@victorterrazas-castro7089 Жыл бұрын

Great information. Any change having an episode on an All In One loan? I hear this loan helps payoff your mortgage faster. Thanks!

@user-dy5tv4yy6t Жыл бұрын

I really enjoyed this one and how easy it is to understand!

@KrystalLatrese 3 ай бұрын

Super helpful thank you so much

@seanpatrickbarnett Жыл бұрын

Love these deeper dives. Can you go over HELOCs

@MrP00p1 2 ай бұрын

great infomation !! thank you

@croftonstreetllc7695 Жыл бұрын

awesome show packed with very useful info!

@tylerjack6300 Жыл бұрын

Another great video! Learned so much!! 👏🏾💯

@rebaneal4047 6 ай бұрын

So informative!

@denicelopez9467 Жыл бұрын

Nice! Thank you for this very helpful. Can you do conventional loans now? Please

@noahwillett5925 9 ай бұрын

Thank you, this is extremely helpful!

@bellabluejungle 11 ай бұрын

My bad. Here's the fix. MIP-Mortgage Insurance Premium is for FHA loans when people pay under 20% down and their terms are more complex. The PMI- Primary Mortgage Insurance is an extra insurance on a different type of loan when you pay under 20% down. *Also note that you can get non FHA home loan by paying under 20% down. Talk to a lender about the details & your options.

@chancelor3235 Жыл бұрын

I had a question about FHA loans. When using one to buy a single family home and house hacking, can you use 70% of rents to help qualify for the loan?

@kathleenvillagomez9211 Жыл бұрын

Very helpful and inspiring. Thanks

@Dio2a Жыл бұрын

MORE DEEP DIVES like this video 🙏🏽💯

@williemaewatson2043 Ай бұрын

Thank you! I love Bigger Pockets; I've learned so much through your platform. Getting a conventional want to buy a l FHA loan next, I want to buy a Multifamily home a four plex if possible, but having a hard time finding one in Michigan any suggestions?

@bsktproductions5658 11 ай бұрын

thank you this was great and very informative.

@faithharris143 Жыл бұрын

Very helpful. Thank you both!!

@ganson4411 Жыл бұрын

That was great! Thanks to both of you!

@elizabethdlcrz Жыл бұрын

Love the content!

@theodoreroberts3407 10 ай бұрын

This is what I need. At least a two family that I live in one. I'm a first time buyer and a senior. So, let's start there. What can you tell me to help me get this and how much will it cost me?

@AR-ts2qr Жыл бұрын

Refinance if rates ever go back down. Fed already announced they won’t be going back down. We’ll see

@aceofslayz Жыл бұрын

Thank you for building with us

@alejandromorales5822 Жыл бұрын

Very good info, thanks 🤙🏼🤙🏼, how long should I wait to refinance from a FHA loan, don't really like those PMIs.

@jickumathew6949 Жыл бұрын

Interested in learning more about financing to purchase a rental portfolio, recasting opportunities and such

@adasanabria7022 11 ай бұрын

Learned so much.

@RealtalkwithTammy 3 ай бұрын

Great video 😊

@Belle_Faye 2 ай бұрын

Very helpful ✨

@Bellawalsh-girly 11 ай бұрын

Very helpful as always!!!

@Lovepinkdress Жыл бұрын

This doesn’t work in current environment with multiple offers as sellers don’t like fha loans as more restrictions during inspections and obviously they don’t want the deal to fall through. Thsi will work when no offers and sellers are desperate. Hopefully this time comes in the next year or two.

@mtrcx1 Жыл бұрын

Thanks for the video. My wife and I are looking to purchase our first home in the Bay Area (Peninsula, SSF, ideally) and are looking for a multi-family home to house hack. As you mentioned in the video, FHA loans in high cost areas aren't ideal. We have some family help and our own savings for down payment and we have excellent credit. What is the best loan option for people in our situation?

@PartyTimeProDJs Жыл бұрын

Can someone use an FHA loan for the purposes of high debt to income and or low credit score, but avoid MIP by either having 20% equity or putting down a 20% down payment? Or is MIP automatically added on an FHA regardless of equity/down payment?

@Touchatt 10 ай бұрын

I’m a Gator. I do short term transactional funding for EMD, gap and double closing funding so you can get more deals under contract. I can also connect isn’t PMLs and HMLs.

@LuisJimenez-fj3ho 4 ай бұрын

Correction: Mortgage insurance is discontinued automatically once mortgage gets to about. I think about 78% of its purchased value.

@Ray-ge1vx 8 ай бұрын

Super helpful!

@deshawndavis 15 күн бұрын

Show us how to do what the title of the video says.

@emanuelcollado1343 Жыл бұрын

I have been doing this for years

@shelvonbrooks2307 Жыл бұрын

Fantastic information

@giniestudio8975 Жыл бұрын

Love this show thank you

@isamfarah3744 Жыл бұрын

Absolutely very helpful

@insightfool Жыл бұрын

Super useful. Thanks. 👍

@lt5556 Жыл бұрын

Great info!

@massguy9625 Жыл бұрын

Great information. Thank you.

@biggerpockets Жыл бұрын

Thanks for watching!

@shackeeljackson4230 Жыл бұрын

Very informative

@jessicaharding512 Жыл бұрын

Learned great tips can you do one of these on the VA loans

@christianbachelder8608 Жыл бұрын

On its way!

@BarbaraLouis 9 ай бұрын

How many loan types are out there, and how to you qualify for a loan with low income?

@alexjbriiones 8 ай бұрын

Yes, but what if this is an investment property and I will not be living there? Then what, where is my 3.5%?

@davidstephens9594 Жыл бұрын

Very informative video!

@biggerpockets Жыл бұрын

Glad you think so!

@MJ-xk8iu Жыл бұрын

I have a 2-unit with a fha loan, I want a 5 percent conventional loan for my 2nd duplex… but I can’t get a 5percent

@Patientintime 6 ай бұрын

Im glad i found this video im a truck driver and always wanted to invest into a property i make about 8k a month currently my expenses are low my monthly expenses are 1650 so im saving a lot was looking into this fha loan im renting a studio apartment right now to save money and kinda want to buy a quad plex or triplex i found a few in idaho and a few in utah im currently in California like you said way to expensive i found 1 in utah for 425k for a triplex which i woupdnt mind living in for the fha loan process also is there a way if i wanted to pay off the fha loan faster once im in or wpuld you recommend a dofferent loan for this case thabks

@widehotep9257 5 ай бұрын

Smart move! You can own up to four rental UNITS and finance them with conventional 30 year fixed rate mortgage. Any more units than that and you need to get a commercial loans. Commercial loans are much worse because they have variable rates and balloon rates, so if interest rates get real high in five years, it could wreck your rental business. Also, commercial loans require 25% down, whereas conventional 30yr fixed rate mortgages require only 20% down OR much lower downpayments if you are willing to pay PMI. Also, if you are on the road and a tenant has a furnace die at midnight on a Wednesday in February, how are you going to fix it? It has to be fixed NOW or the pipes will freeze and your building will be ruined and the tenant will sue you! As a landlord, you will definitely need solid plans AND RESERVE FUNDS for emergency repairs. Relationships with local contractors are vital (HVAC, plumbing and appliance repair are the top 3). Or you could hire a real estate management company to collect all rents, do record-keeping and handle repairs for a percentage of your gross rents (6 to 10 percent). They'd invoice you additional fees for the repairs, but at least the emergencies would be handled immediately. That plan is convenient, but it gets expensive. Good luck!

@francesmccrory1794 Жыл бұрын

This was helpful

@sanaathedivine5749 Жыл бұрын

I'm house hacking my 5 bedroom in Cleveland ( renting 4 bedrooms short/medium term leasing) ive never taken a loan I'm thinking i should go with a fha instead of equity loan 🤔