203k Loan vs Hard Money

[Timothy Edwards Jr]

Is it possible to buy and rehab a house using hard money under your LLC then purchase it in your personal name using a FHA loan? Or is it best to just try to get a 203k loan?

[Sean Blomquist]

@Timothy Edwards Jr the biggest thing is if this is an investment only or are you planning to live there?  A 203K loan is only for owner occupied property and you will have to live there for a specified amount of time before you can refinance or sell it.  

A HML on the other hand will not want you living at the property. You can use that loan to buy and renovate the property and once the rehab is done you can refinance out of that loan into a long term loan as an investment rental property to build up a portfolio much faster. This the what they are speaking of when you hear the term BRRRR (buy, rehab, rent, refinance, repeat).