203k Loan for Multifamily home: What can we repair, who are the contractors, what are the limits?

[Tim Shin]

Hi All,

I'm back to investigating my owner-occupied quad-plex plan in Houston. I really want to try buying a fourplex with a FHA/203K loan but I don't know much about it.

Are there loan limits for a 203k loan? What kind of repairs are you allowed to do? Can you basically renovate a home Property Brothers style with that loan? How long does it usually take to do that kind of renovation with 203k loan approved contractors? I'd like to start living in one next January so I'm wondering what kind of lead time I should give myself.

Speaking of approved 203k loan contractors, do you seek out an approved general contractor? Or do you have to manage several types of individual contractors like plumbing, tiling, painters, etc?

I know that typically contractors that work with investors charge less than to retail rehabbers... do 203k loan approved contractors charge more because they think you are a retail customer? Or is it still possible to find a good but less expensive contractor who gives you an investor bid because they know you'll be back? 

@Brandon Turner 

 Do/Did you ever go visit MFH's with a contractor to figure out repair costs?

Thanks!