What percentage of gross rent from the other units can banks use to help qualify a buyer for a multi-unit property when the buyer will live in one unit?

Neel DhingraLeader - Forward Academy.

Buying a fourplex is easier than a house #realestateinvesting

2 Aug 2023

Watch on YouTube

This is a YouTube video titled "Buying a fourplex is easier than a house #realestateinvesting" featuring Caleb Wojcik explaining how purchasing a fourplex can be easier than buying a single-family home due to bank financing rules that consider rental income from other units. The content is focused on real estate investing strategies and was created in August 2023.

Questions this video answers

75% of the gross rent from the other units.

Most people do not know this, but it's easier to buy a 4 Plex than it is to buy a single family home. The reason why is because when you're buying a multi unit property and planning to live in one of the units, the bank lets you use the incoming rent from the other units 75% of the gross rent from the other units to help you qualify to buy that property. This additional income means you qualify to buy a higher priced property. And the cool thing is because you're planning to live in one of the units, you only have to put up a small percentage down payment.