Does BRRR work with first time home?

Question

Hello everyone l am pre-approved and looking for my first home. The BRRRR method work in this situation? Or how could l make it work?

I am doing driving for dollars and doing my first direct mail marketing.  To find an off-market deal, the harder part is finding a good deal since l am carpenter l can make the deal work much easier but the hardest part is getting approved on a house that needs work. Is there a way l can go around this. To get approved for the conventional loan.

Approved for $200,000 3.5% to 4% mortgage rate. Much of the house in the jersey short need a lot but the

Ozzie Rodriguez, Contractor

Keisha Andrew · Answer

Hey Ozzie,  I plan on doing this myself with my first home.  You can either purchase a single family home or a multi unit property.  You are allowed to purchase up to 4 units with this.  The banks will look at the rents that are coming in from the other units and use this as your income as well.  For a place that needs work you are probably not going to get approved for a conventional loan.  Speak with your lender about getting a rehab loan (FHA 203k).  This will allow you to be approved for the rehab and the purchase of the property.  You can also work with a hard money lender and refinance to a conventional loan after all of the work is done. Typically hard money lenders don't loan on owner occupied homes though. Hope this helps!

Jose Batista Abikarram · Answer

Conventional loans are not nearly as picky as FHA loan so you might be able to make it work. Just make sure that when you are analyzing the deal you have to pay some of the closing costs twice. This is because you lose both with the first loan and with the rehab. As a safe assumption I would take the closing cost X2 and see if the numbers still work. If so go ahead! Good luck hunting

Ozzie Rodriguez · Answer

I spoke to my lander and he is looking into a 203k loan or hard money loan. But is it true that when you do a hard money loan your are not aloud to be your own contractor?? Because a rehab does not scare me since l do this for living.