HELP? Financing a Rehab Property

[Emanuel Connor]

Hey Guys ! Just wondering about FHA Loans ? I'm interested in buying my first property a small 2 Bedroom home, but the house needs work. I'm curious about how these loans work. I would love to purchase the house, and instantly begin the Rehab process to Flip of course. Or maybe Buy and Hold for about a year or two before I do so. How is the Tehab financed ? Will they give you the money for repairs as well ? Is this a seperate loan ? Or do I have to come up with my own capital for this process. If the house costs 20k and I'm approved for 100k is all of that money accessible for purchase price, repairs, etc ? Thanks !!

[Larry Turowski]

@Emanuel Connor Houses that need significant work are generally unmortgageable.  You'll need cash.  Yours or someone else's.

If you qualify for a mortgage you might want to think about buying a multifamily that needs minor cosmetics with an FHA loan if you can get a great price on it. You could live in one unit, rent the others out, do the minor cosmetic work yourself to increase the value, then sell or keep as a rental and buy another and do the same.