203k Loan for multi-family first-time homebuyer

[Kristina Lugo]

I plan on using a 203k to purchase and renovate a 2 flat that I plan to live in for a year or so. I'd like to BRRR it and use the funds to purchase the next, investment property.

Is a cash out refi or HELOC a better option?

Thanks everyone!

[John Warren]

@Kristina Lugo I prefer the cash out refinance in your situation because this allows you to delete the PMI forever which raises your cash flow substantially. Which part of Chicago are you looking to do this in? Make sure that you have an excellent GC lined up who understands the process and is comfortable working with the 203k loan. Your team will be very important to help you pull this off as your agent will help you find a great deal, your GC will help you stay on budget, and your lender needs to be able to pull off the cash out refinance on the back end. It is doable, but there are a lot of moving parts for sure!