203K financing information

[Connor Bause]

Hi all, I just wanted to pick everyone's brain on what the think of these 203K loans for an early on investment. From my knowledge, it seems that you may make the sacrifice of cash flow per month in the hopes of building wealth through equity and long term investment. I would be doing this on a BRRRR/Househack style. Has anyone had experience in a situation where they did not calculate the proper rehab cost and either didn't have enough money or ended up borrowing too much? how did you overcome this issue? What are the limits on this loan? Will the banks normally not allow you to borrow a certain percentage of the ARV or initial value before repairs? This concept really sparks my interest in helping me start. I would just like to know what to be cautious of before jumping in.