Is it possible to use an FHA loan in a brrrr method strategy

6 Replies

Hi @Lewis Acosta

It is the best way to follow through with the BRRRR method with the least amount of capital. You can put 3.5% down. If you go with a 203k loan, you can finance the repairs as well.

If you are able to build enough equity, you can walk away with proceeds from the cash-out.

@Lewis Acosta

Yes, using the FHA 203k Rehabilitation Loan is a great option due to the flexibility of qualified property types and low down payment requirement.

You can even use 75% of the market rent for the units you won't occupy as income if you need it. 

Don't forget about the FHA Stress Test for 3-4 unit properties.