Fha loan

11 Replies

How does everyone feel about fha loans? Here's my plan. I want to get an FHA loan to buy a duplex. Live in one half, rent the other half out. I have not made any moves yet. What's my first step? Go to my bank and get pre approved, then get with a real estate agent? Thanks for any input, love these forums.

That is exactly what I did.
Yes, get pre approved and find an agent. For both I would make sure they have done FHA loans in the past as there are more rules to follow especially if you do a 203k rehab loan which is what I did.

Also start looking for a deal and don't automatically assume your agent knows what is cash flowing property as most agents are not investors.

Don't know your market or your situation but you can buy up to a 4-plex with an FHA loan.

Let me know if you have any other questions.

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@Austin Youmans i am trying to do a similar senario. My father an I have all the tools and experience, but obviously we can't be our own contractors even if we became liscensed.

What are some ways we can reduce the renovation costs, and then do upgrades after refinancing or after our funds are released from escrow?

@Patrick Martone , the property only needs to be in "livable condition" which means something different depending on who you ask but was able to do the stuff like painting and flooring myself. If you want to do cosmetics like update an existing kitchen you could just wait until the loan closes and then it is your property. 

Originally posted by @Austin Youmans :

That is exactly what I did.
Yes, get pre approved and find an agent. For both I would make sure they have done FHA loans in the past as there are more rules to follow especially if you do a 203k rehab loan which is what I did.

Also start looking for a deal and don't automatically assume your agent knows what is cash flowing property as most agents are not investors.

Don't know your market or your situation but you can buy up to a 4-plex with an FHA loan.

Let me know if you have any other questions.

 How do you find out if your real estate agent is an investor and knows how to get you the deals?

@Allie Reeves, I would just straight up ask them if they invest. If they say yes ask them about there deals, what kind of investing, how they found the property.

Also ask them to send you the best best cash flowing deals on the market and double check there numbers to see if they match up with reality.

Yes @Allie Reeves, I'd have to agree with Austin, just ask them straight up. Determining their true level of knowledge is another thing though. I see Realtors all the time who say they invest but send out inflated numbers in their ARV estimations or comp a property with properties that don't compare.

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