REO for a Primary Residence. Can these properties be financed?

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Good Evening All, I’m writing to inquire about the above? I’ve purchased a home and have completely renovated it while living in it (will probably never do that again). I’ve retained the property as my primary residence for two years to avoid the capItal gains tax and am getting ready to list. I bought in this area of Chicago because of knowledge of the market and the increasing home values. My property will make a nice profit upon selling. My girlfriend and I are looking to rent in the city and my plan is to purchase an REO or foreclosure while we rent, obtain a 203k loan and rehab the property during our rental tenure. We would move in following construction. I am a licensed real estate broker however have never done any work with clients looking to take this route. Furthermore, the only investor clients I’ve worked with have purchased cash and rehabbed with cash Wondering how, if possible, to start the process into searching for these types of properties and getting a “leg up” into obtaining them. I’m still very young and looking to start building a portfolio, however, I wanted to grab one of these properties and finance, to free up as much of my (soon to be) capital to begin additional projects. Thank you so much for your help and guidance as I move forward in this venture. Any help is greatly appreciated. Respectfully, Edward O.

Nice work Edward! Sounds like you'll have a nice chunk of equity from this first project. This will absolutely help you with a renovation loan on the next purchase. On that note, you'll want to look at FHA's 203k, but also the conventional Homestyle option since it sounds like you'll have some capital available. We are one of the largest renovation lenders in the country, so happy to discuss both, pros/cons, etc. These are good products to use on foreclosures and properties that need anywhere from a little TLC to a LOT of work. Sourcing those properties though can be difficult. Lots of competition out there still to find them. But persistence is key. I'd recommend getting into the market and researching now...even if you're not quite ready. Best to get immersed and keep your finger on the pulse. You might want to connect with some wholesalers too. Not sure where you're looking, but might have a name or two I can provide....