I am trying to break into real estate investing. There is a triplex in the Milwaukee area. It is listed right now for $129,000. I looked at it last night, and I don't think there is any way that the property will be approved for a normal FHA loan. The house has been on the market since May. It was originally listed for over $200,000. It is bank owned, and they have been dropping the price drastically. I can see the after repair value around $180,000. I am thinking the property will need some foundation work and a ton of TLC. Do you have any advice on using the 203k. Can I structure an offer with contingencies based on the after repair value and repair costs?
Howdy @Zachary Richardson
The first thing you should do is talk to a FHA lender and find out what there requirements are for the 203K loan. Show them the property you are looking at. Don't guess ... know what will or will not work.
What are the projected rental rates? Will it cash flow?
Need to see your analysis after you get more details.
2 of the units are already being rented: 1 for $525, and the other for $700. I am talking to my LO right now, and they do FHA loans. I'll get back when I have more info.
Hello @Zachary Richardson , congrats on finding a deal and crunching the numbers. Is this a property you are going to live in as well, doing the BRRRR method?
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