Need advice: FHA 203k loan or get home improvement loan later

[Arvin K.]

Hello all,

I have a four plex(Minnesota) that was signed this weekend, and inspection next weekend. I am looking for advice regarding the loan strategy.

4 units in total, 1 vacancy

1. Take a 203k FHA loan, and the 5.5% interest rate to renovate all units.

2. Decline 203k FHA loan, and get a loan from a bank after closing, renovate units as tenants leave.

I have never gone through a 203k process, and am not sure what the best option will be. 

This also leads into if I should evict all the tenant (3), renovate all units before closing, and then post for tenants, or decline the 203k and renovate as vacancies open. 

Not sure on which approach to take here, and really need some advice. 

List of items to be done - (inspection next weekend)

HVAC

Air Conditioner addition to current forced air furnace

Electrical

Garage door motor to 1 car garage door

Install recessed lights in living room, and new light fixtures in bedrooms, living rooms, kitchen

Replace light switches/outlets to square plastic white

Flooring

Remove carpet, tack boards one main floor and top floor

Install vinyl plank flooring throughout main floor

Same baseboard

Painting

Paint all wood trim white

Paint kitchen cabinets white

Paint all walls

Structural

Remove half of kitchen wall

Sliding door for half bath on main floor

Kitchen

Replace kitchen counter top, and match bathroom vanities with same

Replace kitchen sink

Replace appliances with stainless steel

Bathrooms

Replace countertops with same kitchen counter material

General work

Install window blinds on all windows