Using an FHA 203(k) on a Foreclosure Multi-Unit

[Michael Bishop]

I'm thinking about buying a foreclosure multi-unit in the Austin, TX area using an FHA 203(k) within the next year as a buy and hold property. Looking for some insight from those who have done similar deals or have knowledge on the matter:

- How do you find enough time to get contractors in to estimate repair costs before making an offer?

- I'm getting mixed info from different sources; does the loan automatically include a 10-20% contingency cost reserve or is it just an option?

- I know you have to occupy the residence for at least a year (correct?); are there any hoops to jump through once you decide to rent both/all units units?

- Did you use a consultant to help with the paperwork/closing process?

- Do FHA loans include a life long PMI?

- In your opinion, what are the cons of using an FHA loan for investment purchases? Pros?

- What are some problems that you've ran into during the course of such a deal?

- Austin area investors - any recommendations on lenders and/or contractors experienced in this type of deal?

If you have any more thoughts on the subject, please chime in. Looking to get a wide array of opinions/experiences to best help me understand what I'm getting in to should I decide to go this route.