Has anyone used FHA and 203k to purchase investment property ?

[Jennifer Pauyo]

I'm just learning and taking information. Has anyone bought a duplex and used the FHA 203K to fund the investment also lived in the investment?

[Damian Bialonczyk]

@Jennifer Pauyo

I purchased my second property (a 4-plex) using an FHA and 203k rehab loan. Let me know if you have any specific questions. In my experience the process and disbursement was pretty straight-forward, however be aware that the lender usually appoints a loan consultant who is responsible for distributing rehab payments to contractor. I had originally thought that I was going to just receive a check for the total estimated rehab costs (similar to what an insurance company may do) and that I was personally responsible for paying the contractor, but that wasn't the case. Since there is a middle-man who is responsible for disbursement it makes it a bit more difficult to negotiate pricing with the contractor. Also be aware that HUD will want to conduct a final inspection of the rehab before providing the final loan disbursement.