Going to try a hybrid BRRRR with a 203K loan.Need advice!

[Kenneth Silva]

Aloha BP family. So I am a newbie in the REI world and want to try a unique BRRRR based on the current situation/ portfolio I have. Currently I have 2 single family homes. the 1st I rent out and the 2nd I live in. The first homes rent covers both homes mortgages. I want to use a 203K loan to purchase my 3rd home and use the BRRRR strategy. Except instead of renting it out after renovations I will live in it (due to owner occupancy rule) My goal is to rent out my second home to cover cost of 3 mortgage. When I finish renovating that 3rd home i will refinance and cash out equity and repeat process on my fourth with a more conventional loan and True BRRRR strategy. This strategy/ idea, i believe should work but this is will be my first "Rodeo" with an REI strategy. Please share as much input and feedback.
 Mahalo🤙

[Derrick Dill]

Not sure how competitive your market is, but in California here, FHA 203k is not competitive since 60 day close is the norm instead of 30 day close. The properties that need work usually go to cash buyers, but there might be one just right for you somewhere in the middle, I would think a property that needs work that has been on the market for awhile. I'll be buying FHA, then refinancing into FHA 203k in a few months to do the renovations is current plan