Thinking about FHA 203K then refinancing after remodel
Hi I am wondering if anyone has done or could shed some advice on what I am thinking of doing. I am thinking about purchasing a small single family home that is a HUD foreclosure and using it as owner occupied for at least a year. The interest rate is like 5.5% and the down payment is 5%. I don't have other money to do remodel myself. Does anyone know after a fix up remodel job could I potentially have 20% equity afterwards that I could just refinance into a conventional because I now have the equity from fixing the property up. I understand you need to know the numbers but is there anyone out there that has remodeled their house or fixed up a house and then had instantly more equity? Is that how that works? This is also my first house and would like to either sell it in a year depending on how much equity it has or using it as a buy and hold rental property.