Generating cash for REI

[Jennifer Shuler]

Hi everyone,

I'm hoping to run an idea by for some advice. My husband and I haven't saved any money for investing since we bought our first house approx. 2 1/2 years ago as a short sale. We have been making repairs and cleaning it up and now between the new county assessed value, our local market, and our repairs, it looks like we could see a profit of between $40,000-80,000 in the near future. Since we don't have cash to help secure a hard money loan and our credit is still building, currently in the mid-high 600's we were thinking of selling and then getting a FHA 203 loan might be a great way to start. It would give us a cash savings account as while as let us start flipping another house at the same time. Does this seem like a good plan for beginners? I'm also thinking of looking for a FHA 203 on a multiplex so we might be able to rehab and gain passive income if that is allowed? Any advice would be much appreciated. We are located in Snohomish County, Wa, which is really strong for investing right now

[Joshua Nudell]

@Jennifer Shuler From what I have read about FHA loans, as well as the information from the BP podcasts, you can definitely use an FHA loan for a multi-family property, as long as you plan to live in one of the units. Brandon Turner loves to call this "house hacking". FHA loans also allow you to take advantage of very low down payments (as low as 3.5%), so there is that going for you as well.

Good luck with whatever you decide to do!