House hacking, what type of loan?

3 Replies

Hello I am new to investing in real-estate, I have found a fourplex that would make a great cash flow even with me living in one. I am unsure of what type of loan to get that would let me put 3 1/2 % down and add repair cost to the loan. If anyone could shed some light on this, it would be much appreciated thanks.

@Justin Tyre Hey man welcome to BP and good on you for taking action and looking for a property. A 203k loan in my experience is a little more difficult to get when you aren't a seasoned investor with a track record but if you can get it then do it! My situation may very well be different then yours! Another path to consider would be take the FHA loan and house hack. Use the cash flow to slowly fix up the place and do repairs month by month. This all depends though on the condition of the fourplex and the importance of the repairs that are needed. If it is a roof, HVAC, AC or plumbing issue I would not do what I suggested. IF it's something like paint or finishing touches just do that along the way while living in it. There are always different programs offered for repairs and paying your down payment costs so look that up in you area and talk to lenders and ask them what they think about the issue.

Honestly, all loan options are available to you.

I'd say an FHA loan is probably your best bet with the least amount of money down. What's your situation look like, since you're just getting started?

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