Second Loan for a Fixer Upper

[Lucas Hammer]

Hey everyone. I closed on my first deal back in July (house-hacking) with an FHA loan and have been improving the property while living in it. My goal this year is to buy another multi-unit (2-4 units) in my city, but most of them need work. I know that FHA has the 203k renovation loan, but since I'm living in an FHA loan property, is there another way to borrow for a property that needs work? Will conventional loans allow me to buy a property that needs rehab and just let me rehab it over time out of pocket? Or is there another kind of loan that would allow me to buy the property and finance some repairs while getting it rented?

If renos have to be done in cash, then I might not be able to get another property this year, but I'm trying to figure out how to keep moving up.

[Tom S.]

@Lucas Hammer  Small local banks or credit unions (portfolio lenders).  Call around your area.  I've always used them in my area and they provide purchase + rehab funds.

Good luck!

- Tom