What to consider when doing the 203K loan

[Kal Wol]

Hello awesome BPs.

I just learned about the rehab loan aka 203k today and I was wondering if it is a good idea or not. Recently I have got a house that is sitting on the market and needs a serious work on it. The price is about 120K below the market value for the very reason.

So, I wanted to know more about the 203K regarding if it is a good thing or what kind of things to lookout when going that route. I will be having a discussion tomorrow with the lender who is referred to by my agent and he is supposed to provide me both loans for the mortgage and for the reno.

This is something I am considering in preference to putting my own larger money. The property that i am thinking to proceed is not for flip, I will be living in it and rent out some of the rooms in the house - house-hack.

Thank you all.