Done deal! I am sharing my experience here with the rest of the community. After over a year of tenacious searches, analyses, and offers, yesterday August 1st 2017 turned out to be the closing day on my 1st owner occupied 3 unit small multi. And this using a 203K FHA loan in the brutal market of Boston, on the east side of the Port Norfolk bay area.

Facts & Numbers:

• 2 beds & 2 baths on each of the 3 units
• Purchased for $655K @ 5% down-payment and a generous dose of 203K closing fees
• Taken a 30K cushion for the 203K streamlined rehab
• Locked in 4.25% @ 30 year interest rate
• Appraised at 750K

The numbers are certainly not the exquisite definition of what a ground-breaking deal stands for, but they certainly fare decently well in this seller's market where cash investors rule, the inventory is constantly challenged and most properties are getting sold for over asking price, taking advantage of the current interest rates, the Everett Casino construction, and a few other speculative but pragmatic plays.

Just like most everyone else that was not raised or surrounded by real estate professionals from a young age, this deal was pretty much riddled with small mistakes here and there, from neglecting the fire department smoke and carbon detector regulations, being over-optimistic on the underwriting guidelines, underestimating the cost opportunity due to all sorts of processing delays, and you name it.

Currently free from tenants, the expectation is to add value by rehabilitating the under-developed basement, adding 2nd and 3rd floor balcony decks, and a variety of practical and aesthetic fixes. From there, we are looking into breaking even while living for free.

Whenever the opportunity presents, I will later be updating this thread with pictures pre and post rehab, rental cash-flowing numbers, and any relevant crunchy details.

When in doubt, leave emotions aside and go back to fundamentals. Just like Scott elegantly presents it in his reference article, the house hacking rehab loan for owner occupants is an expressway to get in the game by seriously limiting your risk and exposure while providing you the opportunity to learn all the ropes of the game hands-on. These low down-payment owner occupant loans are very forgiving once you get to do your financial, physical and legal due diligence in order.

I wanted to express my thanks for all the support provided by the various professionals I have been meeting in the real estate investor associations, meetups and casual one-offs, and of course, the BP community.

Finally, for all the newcomers in the arena struggling to get your first deal under the belt, just be assured that with knowledge, patience, and positive entrepreneurship skills, be confident that you will ultimately do it.