Decatur, GA · Member since 2016 · 3 posts · 1 vote
My wife and are about to remodel our home and a garage with in law suite . I have been digging around and reading a ton of books on investment rental properties. I had a idea that while my current home is being worked on I could buy out first rental property and do some work on it while living in it to clean it up and rent it . I think it would be in the style of a brrr property . But livable while my wife and I work on it . I would be living in the new rental property for say 6-8 months while my home is being worked on, would it be possible to get a 203k loan or a fha loan and then move back into my current house when the work is all done ? Has anyone else tried this method before . Or would the bank not lend to me because I would be taking on 2 different loans at the same time .
An owner-occuoant loan (FHA, 203K, conventional) is entirely possible if you are willing to extend your stay in the will-be rental for a few months to reach 1 year, as Mike mentioned. It would be an opportunity to lock in great loan terms for 30 years (low down payment, low interest rate).
@Geoff Bremner - that would be a great idea. But in order to qualify for an FHA loan you must live in the property for the first year and then you will be able to move out. The same goes for a 203K. After that first year you are good money to move out. Good luck my friend !
It seems the better option would be to get a conventional loan, because my wife and I probably won't live in the rental for a year .
I just hope I can work financing for the home loan and rental property.