Brrrr Method with FHA Loan & 203k on Multifamily

Member since 2021 · 63 posts · 37 votes

Hi, I could use a Pros' advice.

I'm looking to get an FHA Loan on my first property and buy a duplex, triplex or 4-plex with the 203k construction loan to renovate.

Can I still refinance after I get renters in with the FHA loan? Essentially still making the Brrrr method work with this type of loan?

Thanks! :)

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Darcy Dailey

Member since 2024 · 1 post · 2 votes

Quote from @Matthew Porcaro:

@Misti DelMar

Yep! it’s basically just a quick case study about my journey with the 203k, how I leveraged it on my first deal, mistakes I made and how you can avoid them, and steps to take on your own journey to get started.

If you have any other questions I’m always here to help.

Hi Matthew,

Saw this post and searched out your book which was a great step-by-step! We’re looking to do a 203k rehab on a multi family in Brooklyn or queens - do you have recommendations for well versed 203k lenders in NY that understand the nuances? Feel free to DM me too

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Arian Cabrera Alvarez
New to Real Estate · Round Rock, TX · Member since 2020 · 12 posts · 3 votes
5y
@Misti DelMar keep in mind that you are doing an FHA and you have to move to the house and live there for some time before being able to refinance. I am not a lender so ask your lender.
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Matthew PorcaroBusiness Member
Lender · Long Island, NY · Member since 2016 · 457 posts · 336 votes
5y
@Misti DelMar
Absolutely you can refi! I refinanced as soon as I was finished with my renovation of my duplex when I used a 203k on it. Rule of thumb is 6 months after purchase is the soonest you can refi. Sometimes more, depending on the bank you’re looking to refi with.
The refinance is especially important if you build enough equity to get rid of the PMI (20%). That will give you a nice little boost on cash flow.
The 203k Way
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Misti DelMar
OP
Member since 2021 · 63 posts · 37 votes
5y
@Matthew Porcaro Thank you so much! You gave me the info I wanted to know plus more! :) Whew, now I just need the confidence and bravery to dive in.
Is the 203k way a book by you?
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Matthew PorcaroBusiness Member
Lender · Long Island, NY · Member since 2016 · 457 posts · 336 votes
5y
@Misti DelMar
Yep! it’s basically just a quick case study about my journey with the 203k, how I leveraged it on my first deal, mistakes I made and how you can avoid them, and steps to take on your own journey to get started.
If you have any other questions I’m always here to help.
The 203k Way
Website View Page
0 Reply
Ron Kim
Member since 2023 · 4 posts · 7 votes
3y
Quote from @Misti DelMar:

Hi, I could use a Pros' advice.

I'm looking to get an FHA Loan on my first property and buy a duplex, triplex or 4-plex with the 203k construction loan to renovate.

Can I still refinance after I get renters in with the FHA loan? Essentially still making the Brrrr method work with this type of loan?

Thanks! :)

Hi, first post here
why would you want to refinance the 203k loan, would refinancing to the standard FHA mortgage reduce the interest rate or something?
0 Reply
Darcy Dailey
Member since 2024 · 1 post · 2 votes
2y
Quote from @Matthew Porcaro:

@Misti DelMar
Yep! it’s basically just a quick case study about my journey with the 203k, how I leveraged it on my first deal, mistakes I made and how you can avoid them, and steps to take on your own journey to get started.
If you have any other questions I’m always here to help.

Hi Matthew,
Saw this post and searched out your book which was a great step-by-step! We’re looking to do a 203k rehab on a multi family in Brooklyn or queens - do you have recommendations for well versed 203k lenders in NY that understand the nuances? Feel free to DM me too
2 Reply
Ceasar Rosas
Real Estate Broker · Bronx, NY · Member since 2011 · 597 posts · 341 votes
2y
@Misti DelMar 203K is a great option and the soonest you can refi is likely 6 months, but I would plan for at least a year because some lenders would like to see that it has been rented for 6 months minimum. My experience is mostly in the NY area. Not sure what market you are in. Another option can be using a Hard Money Lender, a lot of times there is just less red tape involved. Good luck with your purchase!
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