FHA 203 (k) & BRRRR?

[Joshua Heilman]

Hello everyone,

I am currently looking to invest in my first property here in Tampa, Fl. Currently, I am looking to do an FHA 203(k) loan with the BRRRR strategy. I am just unsure if this is possible, and if so, is there any guidance that you could give me in getting started?

[Matthew Porcaro]

@Joshua Heilman

It sure is, and it’s exactly what I did!

Essentially I bought a foreclosed duplex property for 270k, and wrapped the 80k rehab into the 203k loan so my total loan amount was $350k

After I rehabbed it, it reappraised for $500k, so I had enough equity to refinance out into a conventional loan.

A short time after I moved in with my fiancée and then rented out both units, so the property actually cash flows 2k a month currently.

I now work with private and hard money lenders and put up the $150k equity I gained in the house as collateral to purchase new deals