Purchasing Duplex using FHA

14 Replies | New Orleans, Louisiana

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

Originally posted by @Darryn Oliver :

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

 Nice! This is how I got started 3 years ago! I bought my duplex for $15k down! Later I was able to Cashout $75k after doing some renovation, now its rented out at $4500/month! Gotta love Columbus!

Originally posted by @Darryn Oliver :

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

Where are you looking? 

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....

Goodluck!

@Andrea E.

I agree with Andrea! I did the same thing on my duplex.

My team wasn’t too great, and I learned the hard way. Make sure you start finding contractors early and developing a list that you can call when you’re ready for a bid.

You can build a ton of equity on the deal if you buy right and make sure your building will cash flow at your loan amount.

@Darryn Oliver @Jared J Guidry I own both a local real estate investment company, REvitalize Property Solutions, and a real estate brokerage, GNO Realty. I have been in the REI space for about 10 years and licensed since 2013. I have helped many buyers with the FHA 203k loans, and I have some great local lenders and contractors I can put you in touch with that are all experienced with 203k loans. Feel free to reach out anytime if I can be of service to you!

Originally posted by @Braden Smith :

@Darryn Oliver @Jared J Guidry I own both a local real estate investment company, REvitalize Property Solutions, and a real estate brokerage, GNO Realty. I have been in the REI space for about 10 years and licensed since 2013. I have helped many buyers with the FHA 203k loans, and I have some great local lenders and contractors I can put you in touch with that are all experienced with 203k loans. Feel free to reach out anytime if I can be of service to you!

 First, thank you for reaching out and I'll be in contact soon.