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Updated about 4 years ago,
203(k) Strategy Question
I am not really sure if this is an option but I wanted to reach out to the community help me better understand.
Scenario - I found a triplex that had BRRRR potential however, I do not have the funds to purchase and rehab. My thought is that I could use FHA 203(K) mortgage. Although, I am unable to satisfy the seasoning period, so I have my brother apply for the mortgage and he lives in one of the apartments. The work gets done per the mortgage. After the mortgage seasoning period, I have the property appraised, buy from my brother, settle the mortgage and use the proceeds to secure the next property.
Am I going to jail? Can this work?