FHA loan turned into an investment property

[Camden Keller]

I am curious if anyone here has ever used a FHA loan to purchase a property and after about a year or so (I understand FHA loans usually require you to occupy a house for a certain amount of time) turn it into a rental property?

I am curious to hear people's input on any negatives or positives on this or any other experiences with using a FHA loan to get their first rental property.

[Matthew Porcaro]

Originally posted by @Camden Keller:

I am curious if anyone here has ever used a FHA loan to purchase a property and after about a year or so (I understand FHA loans usually require you to occupy a house for a certain amount of time) turn it into a rental property?

I am curious to hear people's input on any negatives or positives on this or any other experiences with using a FHA loan to get their first rental property.

 Camden - 

I used this exact strategy for my first flip. 

I bought a foreclosure duplex using a 203k FHA loan. The 203k gave me enough money to rehab the foreclosure, and make it liveable.

It was a large rehab, and took 8 months to finish. Once it was done, I realized that I had built enough equity in it after the rehab to refinance out of the FHA loan (no more mortgage insurance, no longer had to live there, etc). Once I did, I rented out both units and still hold the property today.

If you have any other questions on how I did it, feel free to reach out.