hey how is everyone hope everything is well, I am fairly new to investing and I am in need of some advice. My parents are looking to sell me their house they still have a mortgage on it about $75K , the estimated house value on the house is around 130k . my idea is to buy the house using a 203 loan or Fha loan and upgrade it . The house has 3 bedroom 2 bath upstairs and 2 bedroom in the basement level . Thinking about adding a bathroom and a kitchen in the basement level then live downstairs and rent out the 1st floor level 3/2. Any thoughts or suggestion to this particular situation any help will be greatly appreciated. Thank you in advance
Sounds like a good idea. Just 1 or 2 caveats.
1. The 203K loan is only for construction and rehab not to actually buy a house with. If you already knew that then don't mind me. So you would be pretty much be getting an FHA loan to buy the house from them and then use a 203K loan to remodel it into a 2 family. Cool.
2. Please make sure you do your homework to find out if it is legal to convert your SFH into a MFH. Some counties restrict that. Also find out what steps you have to take to turn it into legal Multi-family which can then legally list it as a MFH on the MLS.
@brian. I did not know that. Thank you for the information I appreciate it .
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