How to Mix FHA 203K with DIY for the BRRR Method
Hey Everyone !
First of all I want to say a HUGE thank you to everyone who has posted on the forums here. The wealth of knowledge I've already gained reading through other topics on the site is a total game changer.
ANYWAYS
My wife and I are looking to purchase our first multi-family property in the North Jersey area (specifically in Montclair or Bloomfield.) Our plan is to purchase a 2 or possibly 3 unit property and live in one of the units. This will allow us to take advantage of an FHA loan and only have to make a 3.5% down payment. As we don't have a TON of money saved for renovations we are also looking at using a 203K loan to bring the units up to a $2K/month market standard for a 2bd/1ba. I know there are a few "hoops" to get through with the 203K but I'm fine with jumping through a few hoops for some cash flow.
My question is this: Supposing a property needs a gut rehab or close to a gut rehab, can we hire a contractor using the 203K to handle most of the bigger jobs (roof, siding, plumbing, electrical, drywall, mechanical) and then pay out of pocket to finish the smaller parts of the rehab ourselves (paint, laminate flooring, etc.) ???
We're experienced DIY'ers when it comes to things like paint, laminate flooring and installing fixtures/appliances and want to put more 203k funds toward things we only feel comfortable with professionals doing.
I apologize for the long post but hopefully you can understand where we're at. Any insights or experience would be helpful.
- Riley