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Alex Collins's profile image
  • New to Real Estate
  • from Indianapolis, Indiana
  • Member since Sep 11, 2023

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Alex Collins's profile image
  • New to Real Estate
  • from Indianapolis, Indiana
  • Member since Sep 11, 2023
Alex Collins
  • New to Real Estate
  • Indianapolis, IN
2
Votes |
5
Posts

Multi-Family Home First Time Home Buyer Advice

Alex Collins
  • New to Real Estate
  • Indianapolis, IN
Posted Sep 11 2023, 08:28

Hello, new real estate investor here! I'm looking to purchase my first property, either a triplex or quad. I'm unsure where to start so I'm looking for pointers/advice. I noticed after viewing available homes on realtor.com many of the homes need some rehab. Are there any multi-family home builders in or near indianapolis and if so, would it be possible to build new for $500,000?

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Replied Sep 11 2023, 12:41
Quote from @Alex Collins:

Hello, new real estate investor here! I'm looking to purchase my first property, either a triplex or quad. I'm unsure where to start so I'm looking for pointers/advice. I noticed after viewing available homes on realtor.com many of the homes need some rehab. Are there any multi-family home builders in or near indianapolis and if so, would it be possible to build new for $500,000?


  You can buy house that are already designed you just need a general contractor. I would pick a design and add in the labor costs by calling around. Let me know if I can help.

Alex Collins's profile image
  • New to Real Estate
  • from Indianapolis, Indiana
  • Member since Sep 11, 2023

User Stats

5
Posts
2
Votes
Alex Collins's profile image
  • New to Real Estate
  • from Indianapolis, Indiana
  • Member since Sep 11, 2023
Alex Collins
  • New to Real Estate
  • Indianapolis, IN
2
Votes |
5
Posts
Alex Collins
  • New to Real Estate
  • Indianapolis, IN
Replied Sep 11 2023, 13:07
Quote from @Anthony Freeman:
Quote from @Alex Collins:

Hello, new real estate investor here! I'm looking to purchase my first property, either a triplex or quad. I'm unsure where to start so I'm looking for pointers/advice. I noticed after viewing available homes on realtor.com many of the homes need some rehab. Are there any multi-family home builders in or near indianapolis and if so, would it be possible to build new for $500,000?


  You can buy house that are already designed you just need a general contractor. I would pick a design and add in the labor costs by calling around. Let me know if I can help.


Unfortunately I forgot to add that I want to do this under an FHA loan... Is this still possible?

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User Stats

326
Posts
61
Votes
Replied Sep 11 2023, 13:18
Quote from @Alex Collins:
Quote from @Anthony Freeman:
Quote from @Alex Collins:

Hello, new real estate investor here! I'm looking to purchase my first property, either a triplex or quad. I'm unsure where to start so I'm looking for pointers/advice. I noticed after viewing available homes on realtor.com many of the homes need some rehab. Are there any multi-family home builders in or near indianapolis and if so, would it be possible to build new for $500,000?


  You can buy house that are already designed you just need a general contractor. I would pick a design and add in the labor costs by calling around. Let me know if I can help.


Unfortunately I forgot to add that I want to do this under an FHA loan... Is this still possible?


 A 203k construction loan does allow for new builds 

Alex Collins's profile image
  • New to Real Estate
  • from Indianapolis, Indiana
  • Member since Sep 11, 2023

User Stats

5
Posts
2
Votes
Alex Collins's profile image
  • New to Real Estate
  • from Indianapolis, Indiana
  • Member since Sep 11, 2023
Alex Collins
  • New to Real Estate
  • Indianapolis, IN
2
Votes |
5
Posts
Alex Collins
  • New to Real Estate
  • Indianapolis, IN
Replied Sep 11 2023, 13:22
Quote from @Anthony Freeman:
Quote from @Alex Collins:
Quote from @Anthony Freeman:
Quote from @Alex Collins:

Hello, new real estate investor here! I'm looking to purchase my first property, either a triplex or quad. I'm unsure where to start so I'm looking for pointers/advice. I noticed after viewing available homes on realtor.com many of the homes need some rehab. Are there any multi-family home builders in or near indianapolis and if so, would it be possible to build new for $500,000?


  You can buy house that are already designed you just need a general contractor. I would pick a design and add in the labor costs by calling around. Let me know if I can help.


Unfortunately I forgot to add that I want to do this under an FHA loan... Is this still possible?


 A 203k construction loan does allow for new builds 

That's refreshing to hear because I've been on the phone with lenders all morning/afternoon and they've informed me that they cannot fund a FHA 3.5% on a ground up (construction) build for a quad or triplex.

Julien Jeannot's profile image
  • #3 House Hacking Contributor
  • CPA, Real Estate Broker & Investor
  • from Seattle & Woodinville, WA
  • Member since Jan 2, 2016
  • Posts 757
  • Votes 1,034
  • Experience 16 Yrs
  • Investments 17

User Stats

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Julien Jeannot's profile image
  • #3 House Hacking Contributor
  • CPA, Real Estate Broker & Investor
  • from Seattle & Woodinville, WA
  • Member since Jan 2, 2016
  • Posts 757
  • Votes 1,034
  • Experience 16 Yrs
  • Investments 17
Julien Jeannot#3 House Hacking Contributor
  • CPA, Real Estate Broker & Investor
  • Seattle & Woodinville, WA
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Julien Jeannot#3 House Hacking Contributor
  • CPA, Real Estate Broker & Investor
  • Seattle & Woodinville, WA
Replied Sep 12 2023, 07:48

I'd suggest fining an experienced realtor in your area who has done what you are looking to do.

They will have all the answers and the connections to get your deal done. Might as well start building your team now.

Mark Jones's profile image
Mark Jones
Pro Member
  • Property Manager
  • from Indianapolis, IN
  • Member since Dec 5, 2022

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Mark Jones's profile image
Mark Jones
Pro Member
  • Property Manager
  • from Indianapolis, IN
  • Member since Dec 5, 2022
Mark Jones
Pro Member
  • Property Manager
  • Indianapolis, IN
56
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146
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Mark Jones
Pro Member
  • Property Manager
  • Indianapolis, IN
Replied Sep 13 2023, 10:50

My wife has been a mortgage broker for over 30 years. I think the 203K loan is mainly for renovations, and not for building a home from the ground up. If you are planning on living in 1 of the units, you could do this with a 203K loan for a home that is already existing and needs a renovation. It can be a small renovation or a really large one. FHA is only for owner occupied, you can't do this financing if you are not going to live in one of the units. There are plenty of multi family homes that need work. That is a great way to buy right now, because you do the work and you get the sweat equity. Feel free to reach out if I can answer any other questions for you on this type of project. It can be a challenge since you are a new investor. Learning the ropes of investing along with a renovation project can be a lot. It will be really important that you have a good team beside you that you trust.

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