Purchasing Duplex using FHA

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Purchasing Duplex using FHA

Darryn Oliver
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

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Andrea E.
New Orleans, LA · Member since 2017 · 18 posts · 8 votes
5y

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!

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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    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!

    2Reply
  • Jeremy Blackburn
    Real Estate Agent · New Orleans, LA · Member since 2014 · 52 posts · 21 votes
    5y

    Hi Darren, congrats on the goal!

    Im a Realtor/Investor in the New Orleans metro area. Let me know if I can assist. 

    Good luck!

    Jeremy Blackburn

    1Reply
  • Darryn Oliver
    OP
    Real Estate Agent · Slidell, LA · Member since 2018 · 28 posts · 11 votes
    5y

    @Jeremy Blackburn Sure thing thanks for reaching out

    2Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    5y
    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? 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    0Reply
  • Darryn Oliver
    OP
    Real Estate Agent · Slidell, LA · Member since 2018 · 28 posts · 11 votes
    5y

    @Robert Ellis Gentilly or Midcity but I am open to other areas outside of that.

    0Reply
  • Andrea E.
    New Orleans, LA · Member since 2017 · 18 posts · 8 votes
    5y

    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!

    4Reply
  • Darryn Oliver
    OP
    Real Estate Agent · Slidell, LA · Member since 2018 · 28 posts · 11 votes
    5y

    @Andrea E. Thanks for your advice I will write this down!

    1Reply
  • Matthew PorcaroBusiness Member
    Lender · Long Island, NY · Member since 2016 · 456 posts · 336 votes
    5y

    @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.

    The 203k Way
    WebsiteView Page
    1Reply
  • Elise Marquette
    Lender · Frisco, TX · Member since 2019 · 546 posts · 270 votes
    5y

    That's a great way to get started! Feel free to reach out if you want to bounce financing ideas off someone

    1Reply
  • Darryn Oliver
    OP
    Real Estate Agent · Slidell, LA · Member since 2018 · 28 posts · 11 votes
    5y

    @Elise Marquette sure thanks!

    0Reply
  • Darryn Oliver
    OP
    Real Estate Agent · Slidell, LA · Member since 2018 · 28 posts · 11 votes
    5y

    @Matthew Porcaro thanks for that advice

    1Reply
  • Jared J Guidry
    Member since 2018 · 2 posts · 0 votes
    5y

    Hi. I am also looking for a realtor in New Orleans that is experienced with investing and FHA 203k loans. My time line is 6-8 months and I am interested in MF.

    please feel free to contact me

    Sincerley,

    Jared G

    0Reply
  • Braden Smith
    Investor · New Orleans, LA · Member since 2012 · 969 posts · 747 votes
    5y

    @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!

    1Reply
  • Jared J Guidry
    Member since 2018 · 2 posts · 0 votes
    5y
    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.

    0Reply
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