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