We hear a lot about FHA loans and how you can get into a home for 3.5% down. Did you know that you can also use FHA loans to buy investment properties?
That’s right. As long as you are an owner-occupant in one of the units, you get the same great low down payment that you would in a single family property. This is good for a purchase price of up to $1.4 million for 4 units, $1.1 million for 3 units, and $980K for 2 units. Honestly, it’s a great deal.
There are definitely properties in the Bay Area that you can buy with one of these FHA loans and have a positive cash flow. It’s a great way for a budding investor to get started with little risk. It’s also a great way for someone who may be on a fixed income to have stable housing that actually pays them money to live in it.