All Forum Posts by: Shanna Barnes

I am closing on a property at the end of this month and already looking into my next investment. There is a foreclosure I am interested in, listed at $200,000 in Minneapolis however the unpaid loan balance is much lower. Because my first investment is a house hack and I have an FHA loan my next investment I will need to be more creative with financing. I would like to make an offer for just over the loan balance since I will have limited funds for a down payment after closing this month. My questions are...

1) Are there lenders willing to borrow $80,000-130,000for a house that will likely need rehab. What type of down payment will I need... hoping for less then $10,000.

2) The rehab process is new to me but I am willing to put in the work for a good investment. I need resources in Minneapolis. Any recommendations?

@Jack Plantin

I will be closing soon on a duplex in Minneapolis and decided to go the route of owner occupied so I could put less down and use an FHA loan. This should be an option in Chicago but an expert should chime in.

The benefit is that I only need 3.5% down and therefore my return on investment will be pretty good. The down side is that the property needs to accept the FHA loan... the property needs to be in good shape or repairs specific to the FHA requirements need to be made prior to sell. There's an additional FHA inspection fee and smaller additional inspection fee if they call anything. Apparently they always call peeling paint. One other down side is the required loan insurance that drops my cash flow significantly.

I will need to occupy this unit but am planning on moving at some point to my next investment property.

Hope this helps. I’ll follow this chat if you don’t mind.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Minneapolis.

Purchase price: $350,000
Cash invested: $17,000

Remodeled 6 bedroom, 2 bathroom, with attached garage in south Minneapolis.