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Updated about 3 years ago,
FHA Loan - Beginning
Hello All!
Looking for a couple of tips on starting out in the real estate investing business. I have created a Rental LLC with a business partner and we are currently looking into purchasing our first home. We have found one in the rural area of our home town listed for $82,000. This home has a main floor as well as an upstairs that is closed off and used as an apartment years ago. I would like to purchase this home and rehab the upstairs in order to rent it out. I am considering using an FHA loan with a 3.5% down payment and my wife and I would live in it for a year or two before purchasing our own house. While living in the house we want to rent out the apartment upstairs after the rehab and then rent out the main floor once we move out. I am wondering if an LLC can even be named on an FHA loan as long as one of the owners lives within the residence. If not, I would be willing to purchase the residence myself via an FHA loan. The next issue would be the cost of rehab for the apartment upstairs. I currently do not have the cash in order to do so (my guess would be around $10,000-15,000 in rehab) and very little in collateral to put up for a loan. I have heard of this FHA 203k loan that includes renovation costs on top of purchase price. Wondering if anyone has experience with these types of loans and any advice out there would be great. Thanks!