FHA vs 203K rental property calculator

[Tyler Goulden]

Just looked at my first two properties today. Both 3plexes. One will need 50Kish worth of work and the other significantly less but still enough work so it won't qualify for an FHA loan. If I make an offer I want to make sure I run my numbers right.

For a 203K loan, using the rental calculator I would simply add up the price I would pay for the property, and the price of the rehab and use that as the 'purchase price' and leave 'estimated repairs' blank correct?  Because the price of the property and the rehab would be wrapped together under the same loan so neither would be out of pocket.  I believe that would make the 3.5% down accurate too because it would come out of the property price AND rehab work all under the same loan.  Is this correct?

EXAMPLE 203K rental property analysis:

150K property needs 50K worth of work

'purchase price' = 200k

'estimated repairs' = 0

down payment = 7k (3.5% of the full 200k...not 150k)

loan amount = 193K