FHA House Hacking DUPLEX-Options?

[Carlos Guzman]

Hello Everyone!

I m a newbie investors,I been looking for a duplex,triplex to house hacked and this week I found a duplex in Orlando that I'm debating what action to take.

here is the property information..

-Multi-Family Home 4 Bedrooms4 full Bathrooms

-1,736 sqft

-Built in 1986

-Front unit needs work around $6k (floors,a/c and cabinets) tenant pays $575 month

-Back unit is in way better shape but tenant pays $400 since the work on the unit was done by them  (needs minor repairs at  $2k to upgraded)

Seller is asking $110k (property has been trying to sell for  100+days)

I ask my agent to offer $65k but the counter offer came at $75k.......

I think we can get a deal at $70k not 100% sure

I'm undecided on what to do ?

I believe I can buy it and live in one side and rent the other but front unit needs work asap.

-Can I get approved fha even if one of the units needs to be rehab?

-Do I use FHA 3.5% and government Assistant if offer to me?

-Conventional at 5% plus closing cost?

Already pre approved for FHA but Im thinking about living there for a year than moving and rent both sides out

After repair on both of the units each side can rent for $675-$775

or should I wholesale the deal to a cash buyer?

sorry for the crazy explanation and I hope you guys can help me decide?

thanks,

Carlos Guzman

[Lesley Govan]

Hi Carlos,

I'm a newbie but have been looking into house hacking a multi myself and have looked at FHA financing. If the numbers work, why not do the 203k streamline (FHA)? You can use up to $35000 without an FHA inspection. Fold it all (repairs and mortgage) into one loan and go! You also only have to put down 3.5% but just remember you will be paying PMI with 3.5% down, and that doesn't go away until you refinance out of the loan. Just make sure your numbers work after all expenses and you cash flow. Run the numbers as if you will not be living there.

Just my 2 cents.

Good luck! 

Lesley