Multi-Family House Hack & BRRRR with FHA 203(k)

[Paris Williford]

Greetings everyone! I’m brand new to BP and real estate investment, but so excited to get started.

After consuming every piece of info I can get my hands on, I think I've got my strategy figured out. I'd like to house hack a 2 - 4 unit property in need of rehab with an FHA 203(k) loan.

I have two questions:

1. I’ve heard before that the contractor used with a 203(k) loan cannot be affiliated with the purchaser. Is there any truth to this? My dad is a GC, so I really have never thought of working with another contractor on my first deal.

2. How realistic is it to plan to BRRRR out of the property after 1 to 2 years? I assume it would depend on what the property appraises for after rehab just wondering if folks have had positive experiences with this method.