Updated over 3 years ago on . Most recent reply
Advice Needed! Financing a Rehab on a Duplex House-Hack
What's up my BP fam! I'm currently in need of some advice. I will be looking to purchase my first investment property within the next month when I move to Columbus, OH. My original plan was to house-hack a duplex by living in one side and renting out the other. I am looking to do some value add (nothing too major probably), however I know FHA loans can be pretty strict when it comes to the condition of your property. I will not have enough for an investment down payment (20%), but can for sure do 3-5%. My question is, how can I still use an FHA loan but also get a rehab financed? Is there a way I can do this? Or is there a way to have two different sets of financing, one for the property and one for the rehab? I am hoping to have a few options as I would love to add a little sweat equity in the beginning. Please let me know if any of you have been able to get properties that need work approved, and also get your rehab financed in some type of way. Sorry if this is a little unclear, bottom line is I want to fix up and then house-hack a duplex, what are my options and how can I get this done?
Most Popular Reply
203K is doable but FIND A CONTRACTOR WILLING TO DO IT WITH A 203K FIRST! A lot of them won't just because there is a lot of paperwork and hassle involved, and work for a good contractor is abundant they don't need the hassle. I believe you can do a 5% conventional loan, and get the funds for the rehab through working with an another investor? Where there is will there is a way, just don't be afraid to be creative.