FHA financing vs others?

[Abou C.]

Pro and Con of financing with FHA for newbies

2-4 units class B/C and area?, two partners?. 

[Clay Manship]

Hey @Abou C. 

Or you can go the route of the FHA 203k. There are plenty of articles on here that spell it out directly, but the basis is this: it allows the borrower to roll all mortgage costs as well as all renovation costs into one lump total loan amount. Doing this, you can build enough equity in the property (by making renovations that do not use YOUR money) to build 20% equity in the property and then refinance out. That would allow you to get rid of PMI.

I am in the process of doing this with a 4-unit property. I will continue to live in 1 of the 4 units, but the thing will actually cash flow a few hundred bucks a month after I rid myself of PMI. I talk about FHA 203k a lot on here because from my experience thus far, I think it is a great strategy to begin your investing career as well as build yourself into a cash-flowing multi-family at an early age. Best of luck!