Updated almost 9 years ago on . Most recent reply
FHA loan for boarding house? $1,232/mo cash flow
Can a boarding house qualify for FHA financing if it's considered a residential property? There is 11 bedrooms all rent for $400. The only concern is the property was built in 1850.
Purchase price $150,000
FHA loan
Rent: $4,400
Vacancies 10%: $440
Maint 15%: $660
Capex 15%: $660
Property mgt 10%: $440 (plan to manage myself)
Insurance: $166
Taxes: $375
P&I: $867
Cashflow: without mgt: $1232
With mgt: $792