Duplex hack 203k loan renovation?

[Obed Bermudez]

If I was interested in a duplex, would a 203k loan fix up the part I would be living in as well the vacant area (which will obviously be rented out)? It’s hard for me to believe they wouldn’t “reno” the whole thing but some people have told me they would only fix up the part I’m living in. Doesn’t sound right to me. Has anyone used a 203k loan for a duplex hack?

[Rob Massopust]

Yes, its for both units. Money to buy and fix. Think bigger see if you can squeeze in another unit or buy 3-4 units if possible.

My answer is Duplex is great -Fourplex is best!

If you can swing the extra PMI and charges you can do a 203k for 2-4 units and as low as 3.5% down.

The extra rents [depending on if they are occupied] help you qualify and reduce your exposure by having 3 other units.

If 4 units is too much, then look at teaming up with someone. 

Great strategy I have done them and my clients have done them in the past!