Single Family Conversion to Duplex with FHA 203k Loan

[Nathan Hui]

In my local market I have found that good small multifamily homes are difficult to come by. Naturally, I began to ask myself, can I use a FHA 203k to convert a single family home with a basement (unfinished/finished) into a multifamily property? I have read a few post discussing the FHA 203k that I have found very helpful. One that deserves recognition is Steven Gesis's post "Secrets Everyone needs to know about using a 203k loan". It seems that this type of home conversion could be possible under a standard FHA 203k loan but I am not 100% about it. 

Has anyone done this type of home conversion under a Standard 203k? 

Does anyone know if this is possible? 

[Albert Bui]

Originally posted by @Nathan Hui:

In my local market I have found that good small multifamily homes are difficult to come by. Naturally, I began to ask myself, can I use a FHA 203k to convert a single family home with a basement (unfinished/finished) into a multifamily property? I have read a few post discussing the FHA 203k that I have found very helpful. One that deserves recognition is Steven Gesis's post "Secrets Everyone needs to know about using a 203k loan". It seems that this type of home conversion could be possible under a standard FHA 203k loan but I am not 100% about it. 

Has anyone done this type of home conversion under a Standard 203k? 

Does anyone know if this is possible? 

 Yes you could do this as long as zoning allows for it or you have a conditional use permit as a duplex/triplex/fourplex.

This is the ultimate strategy which stacks BRRR method, with house hacking, with value add semi development-ish conversion of 1 unit to multi. By stacking multiple strategies your returns could be exponentially higher than prior.

Its one of the creative ways to make an area that doesnt cash flow so well to an area that ends up being a cash cow or from a house that was costing you each month to a house that now allows you to live for free or pays you to live there.