Buying My First Property

[Ashley Jones]

Hello BP, I am new real estate investor in the Dallas/Ft. Worth area. My partner and I are looking to purchase our first property. We are mindful that our first property will be considered a "starter home" and are considering house hacking a triplex or fourplex. We don't have the capital for a down payment on an investment loan or access to private funding, so we are thinking about an FHA loan that requires a lesser down payment. The goal is to find a distressed or mix-use property in a desirable neighborhood that we can rehab. My questions is, what banks are recommended for these types of loans; ones that allow your primary and investment to be grouped after rehab? Is the FHA 203k loan the only option. We even considered hard money lenders in which we will not have to live in the property, but that will still require a larger down payment than we have available.

[Ashley Jones]

Originally posted by @Dan Mackin:

@Ashley Jones you can also look at the HomeStyle loan as well. Be aware that a lot of time using the rehab loans can lead to increased costs due to having to work with a fully licensed GC. Sometimes you could be better off using a standard loan then working on the place slowly throughout the year. 

If you want some good recs for that area send me a message and I'll connect you.

 Dan thank you so much for your prompt response and advice. I would love some recs for this area. 

Also, what if the ARV is more than what the bank approves you for a loan.For example, I get approved for $150k; purchase price= $100k and rehab was $50k but ARV= $250k. Will I still be eligible for refinancing the home or will the bank see it as more risky to approve me for the $100k difference?