Considering a House Hack

[Benjamin Ervin]

I am considering buying a live-in flip in Florida with the intent to buy, rehab, live-in and sell.  To avoid tying up cash I can leverage for other flips, I am contemplating financing the live-in.  I am hoping there are some house-hacking or lending gurus here that could provide some expertise with respect to funding this project.

I am aware the 203K loan is potentially an option due to the condition of the homes I will be looking at.  Are there any experienced 203K users/lenders out there who could speak to the requirements, pros/cons, etc. of this product?  Further, are there any other financing options I should be considering?

Thanks in advance for your thoughts and suggestions.

[Craig Curelop]

@Benjamin Ervin - The great part about a "live in flip" is that you are living in the house while you are making repairs. If you do a 203k loan, you are not allowed to do the repairs. It will need to be licensed contractors that your lender approves. 

Rather than do a 203k loan, I would suggest either a 3.5% FHA loan or a 5% down, owner occupant conventional mortgage. That way you can do your own repairs while living in the property.