Strategies

[Rashidi Brown]

Evening BP community,

Question, Say I finance a multifamily home with an FHA loan with the 3 1/2 percent down as an owner occupant of course, then say I leave that apartment and rent it out, I'm assuming I have the other units rented. Could I again go get an FHA 203k loan with the same 3/ 12 down and get a single family that may need some cosmetic work? or is it that I have to refinance on the multifamily in order to make that happen.

Your thoughts,

Rashidi Brown

[Steven Gesis]

Originally posted by @Rashidi Brown:

Evening BP community,

Question, Say I finance a multifamily home with an FHA loan with the 3 1/2 percent down as an owner occupant of course, then say I leave that apartment and rent it out, I'm assuming I have the other units rented. Could I again go get an FHA 203k loan with the same 3/ 12 down and get a single family that may need some cosmetic work? or is it that I have to refinance on the multifamily in order to make that happen.

Your thoughts,

Rashidi Brown

 Rashidi-

You will not be able to do this in parallel with an existing unit, you can although get a conventional investor renovation loan, you will not be able to do 3.5% down, but you may be able to get as low as 15% down. The rental income + savings from your "house hack" technique, should lend you the ability to hopefully save some $$$'s and make your next investment. Hopefully, if you buy right you may even have some residual equity post your renovation on your FHA Multi Family, you can even consider using some of your equity in a equity line position play or you experience enough growth coupled with the equity that you can refi to a conventional 15, reduce your interest responsibility, get a more favorable rate and climate your PMI, this is a little more complex and requires an intricate series of ballot steps to achieve the ultimate outcome, but very doable.

Much luck with your accession and renovation.