Is this strategy possible to achieve my goals?

Question

I bought an investment property and it needs some work. Is it hard of buying an owner occupant house and getting a 203k loan to rehab the investment property since that will be income.

Whitney Hutten · Answer

@Kurtis Johnson If you buy using a 203K loan, have plans to live in the property at least 1 year for loan purposes (2 years for tax purposes). Living in it 2 out of 5 years will most likely allow you to take up to $500k in gains ($250k as an individual) tax free when you sell.

Paul Welden · Answer

@Misti DelMar I've had real estate clients who were Foreign Service Officers who were able to buy a property as their primary residence even though they spent a majority of their time outside the USA.

Whitney Hutten · Answer

@Paul Welden You bet! I think the househack is really underestimated as a powerful wealth builder.  Also, househacking, then refinancing to invest, then selling... It's all about converting your primary into an investment vehicle!

Misti DelMar · Answer

@Paul Welden Thank you! I will do my due diligence but I'm feeling encouraged now ;) Thx for your input!

Paul Welden · Answer

@Misti DelMar Yes it's possible with FHA ... depends on employment/income. It's better to have this discussion with the lender.

Misti DelMar · Answer

@Paul Welden  Ahh that's so good to know, even with an FHA?

(Also apologies for hijacking the thread to the OP haha. I created my own post but it never got answered and figured this was in the same realm of conversation :))

Misti DelMar · Answer

@Paul Welden Ok thanks for your reply! :)

Paul Welden · Answer

@Misti DelMar Yes it is possible to do what you proposed.

Misti DelMar · Answer

@Whitney Hutten Oh yikes, I definitely don't want to commit fraud haha. I thought that maybe since I wasn't using the other side of the duplex for income, it might be ok. I liked the FHA for the low down payment of course, getting started. Thx for your help!

Nicole Heasley Beitenman · Answer

I'm not sure I understand the question. Did you buy cash and now want to put a mortgage on it with a 203k? If you're good with living in the property for a while, absolutely. If not, you'll need conventional financing, private money, or hard money if you need rehab funds.

Is this strategy possible to achieve my goals?

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