FHA Loan and Funding Repair Costs

[Clay Sellers]

Hi,

My wife and I are looking to purchase our first investment. We want to try to use an FHA loan to purchase the property. That being said, we know we will have to live in the property for a year. We are willing to do that but the place needs a lot of work (Original owner purchased in '86. Still has original kitchen,etc.). We are using all of our funds for the purchase. What can we do to get $ for the repairs needed?

Here are some specifics on the home:

Purchase Price: $270,000

Repairs: $20,000 - $30,000 (could be less if we do some of the work)

ARV: $350,000 - $360,000

Rents: $2200 - $2400

Air B&B rents: $185 - $250 p/night

Location: S. CA, beach close (5-10min), Amazing Sunset views, Major Attractions close by, easily accessible, etc.

We realize it's not a home run. We just want to get in the game.

We are hoping to BRRRR it.

Any help, advice, is appreciated.

[Clay Sellers]

Thanks @Nick G.

We did look into the 203K but, as you said, "These types of FHA loans often take multiple months to close". In this particular case, we were already FHA pre-approved and our lender doesn't do 203K loans they are "Too Much Work".

This opportunity popped up in the community we currently rent in. We decided we needed to jump on it. Recent comps have been in the $350s (sold) - $360 (listed/pending).

The property IS outdated. As a guy, I would call it livable, but my wife sure doesn't. ;-P