First Rental Property Investment

[Vernon Johnson]

Is an FHA 203k loan recommended for your very first rental property? I've been reading different ways to get started and this one sticks out to me the most.

[Justin Sullivan]

Someone else can correct me if I am wrong but I think you would have to get approved for an amount they would loan you like a conventional mortgage then you could find a 4-plex in that value. Not sure if they would take the extra rent money as income or not. I am responding to this post for you from a contractor point of view for 203K. They have very strict rules and payment schedules for this type of loan. A lot of contractors don't like this loan option because they have to be on point to get all there money. I would suggest speaking with a few contractors prior and let them know this is the loan option you are going for and ask them if they are willing to work with this. Trust but verify, ask them if they have done this type of job before and ask to speak with the client as a reference. 

That's my advice for this type of loan. I've heard really great things and really bad things about 203K. Just do your research and homework before you jump in and you should be fine!

Good Luck!!