Looking for Pros and Cons of using an FHA Fixer-Upper Loan (203K)

[Seth Galligan]

Hello BP Community!

Getting set up to buy my 3rd rental property! We plan to house hack a multi-family. I am looking at using an FHA Fixer-upper loan (203K). It seems like a great option for us - almost too great. My spider sense is tingling and I suspect that there have got to be some catches that will jump out at us along the way.

Can anyone share experiences they've had with these loans? Were there any "gotchas" that you wish you would have known about before you got into the process?

Any advice or guidance would be most appreciated!

P.S. - I love to give back to this community. I am a project manager with over a decade of experience. I would be happy to help anyone who could use a consultation on project plans for real estate endeavours e.g., rehabs, renovations, moves, business processes, etc.

CHEERS!

[Travis Brizendine]

Hey! Omaha lender here. If your credit is good, you may want to look at a conventional product. FHA typically is best for sub 720 IMHO. Mortgage insurance for the life of the loan, funding fee, etc. you also have to have a couple appraisals and a loT Of paperwork. Make sure you have a 203k expert doing the loan or Flagstar bank who a lot of people sell to have a department that takes it and runs. Best of luck man.