203k Advice

[Jeremy Headrick]

Hi all! Finally making the first steps in purchasing an investment property. Looking at a duplex that is in a great location for my area, but it's a little rough around the edges. Without a huge cash reserve, and not having a problem living with my investment, I'll be looking at going FHA on my loan. Wen't to the property today to walk around and get an idea of what condition it was in. Biggest issue that stuck out was on the back corner of the home there was damage to the roof from where a tree limb has hit and punctured through the eve. There's also a small back porch on the lower unit that has a very noticeable sag in one corner I see an inspector flagging. In my understanding, a regular FHA does not allow such damages to the structure. This is a situation that a 203k would apply, correct? I'm thinking that with around 20-25k for repairs, I could really turn this property around. If I could get the seller to drop asking price around what repairs will cost me, I'm looking at 14% ROI with the property. What are some of the hurdles that I'll be looking at? I understand that a 203k takes much longer to close 45-60 days, and I had one lender tell me the last deal he did took almost 6 months. And, after getting repair estimates with a contractor, would I be able to do the repairs myself? I have extensive construction experience and could really save a ton of money. Should I possibly start shopping for a lender that specializes in 203k loans? Don't think I want to use the lender that told me 6 months. What other questions should I be asking? What should my next steps be? Thank you all in advance!