Buying a local HUD home

[Tom Kuhen]

Hello fellow BP members,

Potential Cleveland investor here, and I've been reading loads of blogs and forums on BP and attending various local meetings, in hopes of finding a starting point that suits me, and I may have potentially found one. It's a HUD home that was rented to a family member of mine about 2 years ago. I frequently visited, so I know the layout of the house, and most of the work that would need to go into it. I've looked through the blogs on here to gather some information about HUD homes, but as the clock counts down, I'd like some other insight (that's where you come in).

A few questions (trust me there are way more):

1. Any particular advantages/ disadvantages to HUD homes?

2. How flexible is the price?

3. If I buy as owner occupant, how long do I need to stay before I can rehab/resell?

4. Can you clarify how the FHA standards work?

5. Do I have to do a 203k loan, or can I use a HML?

I think that this would be a great first property to rehabilitate, I'm familiar with the area, it's close by, and I'm very familiar with the property. The comps in the area look promising and have sold recently for approximately the same price (which would be a good thing for this house). I'd love to talk to someone who could answer some questions for me, walk me through the HUD process, or discuss the property in more detail.

I will eagerly await any response, thank you in advance,

Tom Kuhen