Dallas-Fort Worth Real Estate Investor Club

I need advice from experienced investors. I am interested in buying a 4plx. I have been prequalified based on my income and on the income of the other three units. The lender has insisted I have to fulfill several requirements before closing: one the property has to appraise, there has to be existing leases in the other three units, I have to occupy one of the units, I have to have three months reserve, the property has to pass inspection etc. The properties I have come accross are all occupied making it difficult for me to occupy, the owners are asking for more than the appraised value by more than 20% making it difficult for the lender to approve, the income from some of the three units do not meet the lenders thresholds. I have come accross foreclosures on sale but because of these requiremements I can not go for the foreclosures. Any advice?

Thanks for your reply Robin. Yes you are right, I am trying to save on downpayment and closing costs by going the FHA way. Going for loans under FHA that allow for repairs will invite more stringent condition, add on to the list of already existing requirements and require more time to fulfill. It may also require that the buyer have more funds than the 5% required not to go the FHA way. A heavily discounted deal is welcome though they dont come by eazily. I am tempted to conclude that a typical prized investment properties will not pass conventional lending requirements. Would be happy to be proved otherwise. Would like to share with anyone who has ever acquired multifamily under FHA.