FHA Loans and Cash Flow for Single Family

[Gordon Olson]

I've been approved for an FHA loan so I need to live in the property for a year. I don't have any money yet for a down payment. The loan apparently doesn't allow me in the state of MN to have both a 203k loan and state down payment assistance so I either need to come up with a 3.5% down payment or skip rehabbing.

With regards to that, without taking on roommates single family properties don't show good cash flow in the outlying areas of Northwest Minneapolis. Any ideas of how to do rehab while still getting a regular FHA loan? Or can't this really be done.

Thanks.

[John Woodrich]

@Gordon Olson reach out to @Tim Swierczek, if there is a way he will know how.

Many new investors start by owner-occupying a duplex as it solves their need for housing and getting in on the cheaper end.  If you don't have money for a 3.5% down payment you may find it near impossible to get into rehabbing properties.  Only option may be to partner with someone who has the cash who would like to utilize your low-down payment loan.  Now it may seem like a good idea but that may not be the case in a few years if you hold it.