My husband and I have been looking a duplexes and fourplexes in the area. We plan on financing our first rental property with an FHA loan and house hack. Most of the properties that would cash flow for us based on a preliminary workup we did would require some repairs first. One duplex in particular looks updated in pictures on the inside, but when we drove by the property it was obvious that the siding on the entire home would need to be replaced and a few other more minor things. We would have the money for the down payment and closing costs, but how do you get the funding for repairs? Any strategies would be appreciated.
Thanks @Derrick E. That strategy kind of terrifies me though. Do you do a lot of work yourself to help with costs?
Yes I do the majority of the work myself. I hire someone on an as needed basis and pay him out of my liquid. I put materials and new tools on Lowes card first. Then I just use a regular credit card. I also don't put a lot on there. I've never had more than $5k in total. Looking back it would probably be much harder (from a mental stand point) to do that starting off on the first house though.
Definitely apply for a card at Lowes and spend at least $300 and ask for the 6 months same as cash. It's the best thing ever when starting out imo. Then use the first few months of rent to pay that sucker off. When you are scraping change together to make those first few deals work every little bit helps. My first thing was $1,000 limit with Lowe's and it was a lifesaver on my first buy and hold investment.