FHA 4 plex BRRR in South Texas

[Robert Johnson]

Hey BP!

I have recently been making my first moves on my real estate career by selling my single family home I got a couple years ago and buying a 4 plex in McAllen TX. The 4 plex is in process right now for an FHA 203k loan. My purchase price is 255k and I expect to have about 50k in repairs to bring the property back up to snuff. My ARV should be somewhere in the neighborhood of 400k. I was wondering if anybody else had experience with refinancing out of the FHA? My goal is to get the property to the point that I have a 25% LTV so that I can refi into a conventional investment loan (and hopefully house hack another small multi with another FHA). Some questions I have:

How long do I have to "season" the FHA loan before I am able to Refi?

Is there still an owner occupancy requirement if I am able to refi before 1 year of owning the property?

Thanks in advance for the insight!

[Jake F.]

I can't answer your questions about FHA loans, but I'm curious about the numbers you stated. $255k should get you an average 4plex around McAllen. And $50k will take you a LONG way in a rehab. What kind of work needs to be done? I'm trying to figure out where there are 4plexes in McAllen that need $50k in improvements but are still worth $255k. On top of that, $400k is really the top end of 4plexes in McAllen. Most anything trading at 400k are brand new or built within the last five years, with granite counters, stainless appliances, etc.