Fixer Upper Duplex vs Renovated Duplex

[Steeve Gauthier]

Hey fellow BP members, 

Long time member but first time really posting (Shame on me! haha). I'm hoping some of you can grace me with your advice with an idea that I have. 

So my goal is to house hack my very first rental property which leads me down the path of purchasing a duplex. I planned on purchasing the duplex using the FHA loan, but with that being said, I am trying to figure out/understand which one would be more feasible option to do.

Would it be more beneficial to purchase a duplex that is renovated and move in ready, put a tenant in there and get the process started.(Not forgetting my due diligence of course!) or would purchasing a fixer upper duplex and using the 203k loan to help with the repairs, be a better route to go. 

Any advice would be greatly appreciated!

[Evan Polaski]

@Steeve Gauthier I have no firsthand experience with FHA and 203k loans, so you can disregard if your question is only focused on those products.

As for the renovated vs fixer-upper, it depends. Are you handy or have someone that is? I lean towards fixer-upper because you will typically get a better ROI. In my market (Cincinnati) renovated duplexes sell at a premium to cost to fix. So you will not only get the same rent for less cost, but you will likely see the appreciation of the asset associated with your renovation. This all assumes you have well priced, quality labor to renovate the units.