Purchase an owner-occupied 2–4 unit property that provides a comfortable place to live, substantially reduces monthly housing costs, and does not require a major rehabilitation project.
- Legal 2–4 unit residential property
- One unit available for owner occupancy
- Property is financeable with conventional, FHA, or another appropriate owner-occupied loan
- Zoning, certificate of occupancy, tax records, and physical unit count are consistent
- Safe and habitable at closing
- No major structural, foundation, roof, water-intrusion, electrical, plumbing, sewer, or heating issues
- Verifiable rents, leases, taxes, insurance, and operating expenses
- Rental income supported by current leases or credible market comparables
- Comfortable owner’s unit with acceptable condition, layout, privacy, and parking
- Location is suitable for both personal occupancy and long-term rental demand
- Purchase leaves a substantial cash reserve after closing and immediate repairs
- Preferred personal monthly housing cost: $1,500 or less after rental income
- Maximum personal monthly housing cost: approximately $2,000
- Property should remain affordable with conservative assumptions for vacancy, repairs, maintenance, and capital expenses
- Deal should not depend on immediate rent increases, refinancing, rapid appreciation, or converting unapproved space into another unit
- Immediate repairs must fit comfortably within the available budget
- Illegal, unpermitted, or unverifiable units
- No dependable path to occupy one unit
- Major structural damage or persistent water problems
- Serious fire, mold, environmental, sewer, or foundation issues
- Open-ended zoning, variance, permit, certificate-of-occupancy, or code-enforcement problems
- Seller will not provide access to every unit
- Seller will not provide leases, rent records, utility costs, or operating expenses
- Property only makes sense using unsupported projected rents
- Immediate work would consume most remaining cash reserves
- Serious inherited tenant problems, including major arrears, active eviction disputes, unauthorized occupants, or conflicting lease information
- Property cannot be carried through a vacancy or significant repair
- Owner’s unit or immediate neighborhood would be unacceptable to live in
- Separate utilities
- Laundry facilities or hookups
- Storage for tenants
- Cosmetic improvements rather than major system replacements
- A vacant owner’s unit requiring little or no work
- Individually controlled heating and cooling
- Convenient access to employment centers, transit, shopping, and services
- The unit breakdown is optimized for a single owner occupant. e.g. I would prefer a triplex with two 4 bedrooms and one 1 br rather than a duplex with two 5 bedrooms. I am just by myself and those other rooms would really just go to waste.
- Low-maintenance exterior
- Existing tenants with documented payment histories
- Modestly below-market rents with realistic upside
- Off-street parking
Legal, financeable 2–4 unit property with one comfortable unit available for owner occupancy. Prefer a conservative personal housing cost of no more than $1,500 per month and a maximum near $2,000. Property should be habitable without major rehabilitation, have verifiable rental income and expenses, retain strong cash reserves after closing, and have no significant zoning, occupancy, structural, water, or tenant-related problems.