HELP! Newbie Investor - FHA 203K for a Flip

[Danny Ye]

Hi everyone,

I am a new investor based out of California and am looking to get started in real estate investing. First off, thank you to Brandon Turner, David Greene, and all the members of the BiggerPockets team. You guys have me HOOKED on real estate investing and I am dedicated to succeeding in REI. And of course, thank you to the rest of the BP community who have contributed so much value and insights to newer investors like myself on this forum.

I found a short sale SFH and have determined that the numbers will not necessarily work as a long-term rental but will work as a flip. I'm thinking about using the FHA 203K loan to pursue this deal and have some questions regarding this loan.

1) How long after the loan close can I sell (flip) the property? I read online that you cannot sell within 90 days of loan close?

2) After selling the property, would I be disqualified from further FHA loans for 3 years? FHA defines first-time homebuyer as "an individual who has not held ownership in a principal residence during the three-year period ending on the date of the purchase."

I'm afraid that if I use the FHA loan for this flip, I will be disqualified from using it again right afterwards (for at least 3 years?). If this is the case, I don't want to waste the loan on a flip and would rather use it for a long-term rental property.

Any advice on the above would be greatly appreciated. Thank you all and stay safe!