Buy & Hold + FHA203k
Hi there BP friends...
I've been spending some time trying to figure out how to acquire my 3rd rental unit. Here are a few facts:
1. We have no "cash." We are levered up.
2. Our home has 250k in it (mortgaged 50k)
I'm casting around via county records, driving around, center of influence, tax lien auction (happens in the spring in my county) etc. for a junker in a good neighborhood to either rehab (Brendan's BRRR example) OR just purchase with an FHA203k while we live in it, fix up, and then rent out.
This means we would leave our home (legal 2 family with in-law apartment rented + rent out the portion we live in as well) and get the FHA for the cheap down and rehab financing. When our FHA home was complete, we would rent it out and either
a) return to our original home or
b) get another FHA to do it again (is this possible?)
Is FHA a one-time only situation? If my goal is to own a million dollars in real estate in ten years, is this a good start? I like the BRRR thing as well but I'm getting mixed messages about getting the heloc on the house we live in now. I realize people do it all the time but as a novice investor the idea scares me. I've heard that one shouldn't take out a LOC on a home that you are actually living in, that it's too much of a liability. Not to mention that if my Dad (who bought me the house with all that he had) discovered what I was up to he would have an aneurysm.
I thank you all in advance for your valuable opinions.
Best,
Amy