Seeking Advice on 203k Loans for Multifamily Properties

[Jack Stovall]

Hello everyone,

I'm currently exploring my options for purchasing a property and have had my eye on the 203k loan. From what I understand, this loan allows me to add value to a property while also putting the lowest down payment possible. I'm particularly interested in this loan because it seems like a great way to increase the value of a property without using your own money.

However, I'm new to this and would appreciate any insights or advice that you may have. Are there any red flags that I should be aware of (Contractors, lenders, etc..)? Is there a formula I should be using to determine whether or not this loan is a good fit for me? Also, I'm specifically interested in purchasing a multifamily property, so I'm wondering if this loan is best suited for that type of property.

Thank you in advance for your help and guidance!

FYI. I have my eyes set on Nashville and surrounding areas. Currently in Los Angeles and work remotely.