Updated about 6 years ago on . Most recent reply
House hacking in Pittsburgh
I was recently approved for a loan. I am looking to house hacking a 2-4 unit with fha or fha 203k loan preferably on the east side of pittsburgh. My question is what if the purchase price is lower then the arv? Is it still worth pursuing? How does that affect the ability to refinance down to line to possibly have money to pull out for another property? I’m new and have a few questions. If there is anyone on here I can reach out too via phone please send me a message. I’m finding places like turtle creek, Pitcairn, Wilkinsburg.
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@Devon Shives the purchase price being lower than the ARV is what you're looking for because that's how you create value. You'll want a decent spread between purchase and ARV if you're looking to refinance. One you improve the value you should be able to refinance out to at least 75% Loan to Value (75% of the new value).
Make sure that you keep cash reserves when you do this though because if you don't and use that money to continue to reinvest you could be at risk of overleveraging yourself.