Real Estate Agent · Slidell, LA · Member since 2018 · 28 posts · 11 votes
I will be looking to purchase a Duplex in new orleans and surrounding areas using FHA financing in the next 6-12months. My plan is to house hack for 1-2yrs. This will be my first investment property, right now I am currently building personal credit in order to secure a loan. I am looking to connect with some good lenders,mortgage brokers, and realtors to make this happen while building some relationships in the real estate world for future investment properties. TIA for all advice
Congrats Darryn! I bought my duplex in 2018 using an FHA 203k Streamline loan. They are great because they allow you to roll in renovation money into your loan. I think I put a total of $10k down (that's closing costs and everything). I was able to do up to $30k in reno work. The streamline only allows for cosmetic fixes. Nothing structural. There is another loan for that, but their closing process takes longer, and I didn't have the time.
On the day I closed, before a single day of reno work had begun, my home had already appraised for $90k above my purchase price. I currently airbnb the other side but may transition to month to month furnished leasing due to the lack of tourism lately.
My biggest piece of advice is to secure a TOP NOTCH team before you even start looking for houses. Do your research and ask them ALL the questions. Only work with realtors and lenders who are very experienced with FHA loans. Find general contractors with a proven track record of quality work and positive reviews. For 203k loans, they get half the money up front and the other half when the job is done. If your contractor can't float the funds for the project, then RUN.
This was a major learning experience for me. Unfortunately, I didn't have the best team and ended up feeling like I was doing everyone's job for them, while they collected the commission check. Lesson learned. Still looking for a GC I can trust....