203k streamline advice wanted

[Jen Boyd]

Hi All, I need some help and advice. This will hopefully be my first jump into the real estate investing world and I feel like I've found a deal with potential, but it needs a good bit of work. I brought a contractor with me to look at the property and he said the basement looks fine with no water damage, structure looks fine, but he is worried that what looks like an addition onto the house may not be up to code, as well as the fact that the house is very close to the building next door. 

Question 1: I assume I need an FHA-certified inspector to come out and make sure everything is up to code beforehand, correct? I am basically required by the lender to make an offer contingent on inspection and appraisal?

Question 2: What if I go with the streamline loan and it turns out to be really close to the $35k threshold? What if there's a change order? The home is really old so I'm worried I'll go to do something simple and find a bunch more problems which = $$$.

Question 3: Should I still hire a 203k consultant to inspect the work? You still have to make "draws" from the funds in escrow with streamline as well, right? How does that work when you don't have a consultant? Who inspects?

Thanks in advance for your help and advice! Would love to hear from anyone who's done a 203k streamline already