Buying a Multi-Family apartment building while Renting in a city
Asking here because I can’t find specific results online.

I currently own my house (mortgage) and in the process of selling, and will most likely be renting/living in an apartment in my city.

If I were to purchase an apartment building (6-12 units in state or out of state) while I myself rent, would I have any issues with securing the property, compared to having a primary residence?

Thanks gang!
[{"id": "irwe3iw", "text": "To state the obvious, are you equipped to purchase as an investment with a higher interest rate and down payment amount? Any way to do a 4-plex and get a traditional mortgage?", "replies": [{"id": "irwg164", "text": "Yes, I would be able to afford a 4-plex and get a traditional mortgage.  \n\n\nJust curious about more units because for example:\n\nCity a few hours from mine  \n12 unit building\n\nAsking price $775K\n\nGross income $112K\n\nNet income $59K\n\n11 2/1 units &amp; 1 1/1 unit", "replies": [{"id": "irwm2ck", "text": "Sounds like you are not even getting $1 per sf rent.  Don't see how you can make money on that.  Any cash flow will be eaten by capex.", "replies": [], "depth": 3}, {"id": "irxf26d", "text": "So approx 50% expenses - normally use 35%. Why so high? \n\nPlumbers are cheaper there? Roofers work for free there? Capital expenses will be the same as a building with triple the rent. \n\nThings are cheap becasue nobody wants them. Why would you, from out of town, know more than the locals. \n\nThis will be a bad investment.", "replies": [{"id": "isy0a3u", "text": "50% expenses is cautiously reasonable napkin math given no specific details are listed. 5% capx, 5% management, 35% expenses and 5% for vacancy and uncollected rent.", "replies": [{"id": "isyj2gc", "text": "If buddy buys this he will be broke, inevitably.\n\nHe's a grown ass man, if he wants to buy a POS and suffer for years, rock on.", "replies": [{"id": "it0j2gb", "text": "At price OP noted, it\u2019s a 7 GRM and a 7.6% cap. We don\u2019t know location grade or if in city with declining population. Lets say location and tenant profile are both a D\u2019s then hard pass. If location and tenant profile are both C\u2019s and City population is increasing and or rents below market, its in the ballpark of a typical deal and may be an opportunity for someone, especially if they can shave 5% off price.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "irxeoe8", "text": "6-12 unit apartment buildings \"out of state\" are always cheap because the tenant profile is horrible, and/or they are half empty.\n\nYour spreadsheet is lying to you. \n\nKeep your money, get your 5% from the bank while the economy collapses, interest rates go to 8% and you can get an actual good asset from the bottom.", "replies": [], "depth": 1}, {"id": "irxi2xe", "text": "Thank you to everyone who replied!  \n\n\nI appreciate the insight.  \n\n\nThe numbers from my earlier comment were from a listing on loopnet.  \n\n\nIf you haven't figured it out already, I'm very new regarding CRE and will be studying/taking classes in Q1 (Break into CRE).\n\n&amp;#x200B;\n\nI was curious because I was once told from a REI financier that if I was renting, financing an investment property would be difficult compared to owning a primary residence.", "replies": [{"id": "irxk6ez", "text": "Don't worry as much on the financing (although that's certainly important), but make sure the deal works first.", "replies": [], "depth": 2}, {"id": "iryn7hk", "text": "Personal housing is irrelevant to loan underwriting for recourse. Maybe a lack of ties to the area? If your balance sheet can PG, I don\u2019t care about own vs rent.", "replies": [], "depth": 2}], "depth": 1}, {"id": "is0fosz", "text": "Just keep in mind any rent regulations on units 5 and up. Like in New Jersey every town has different laws whereas New York has the same rent regulation across the state. \n\nI agree with previous folks. Find a 3 or 4 family that you can house hack or just occupy one unit and live rent free basically.", "replies": [], "depth": 1}]