Hello from Philadelphia Suburbs

[Jason D.]

Long time lurker to the BP forums. I've decided to introduce myself now to network with my fellow REI. I'm currently finishing up grad school and will graduate in 2017. My cash is going to paying the tuition as I'm not willing to take it student loans. I would love to start investing in 2018 once I have built up my reserves. Being that I own a primary residence I would have to put down 20% as my wife isn't interested in doing a heloc. However, I'm interested in partnering with a new investor in order to get an fha 3.5% down and 203k. I just wanted to know if all the seasoned investors would think of this as a viable strategy. Thank you for your input.

[Shawn Washington]

Hi @Jason D.,

Unfortunately you can't partner with someone on a 203K loan. FHA doesn't allow loaning the down payment. You could possibly gift it but that's a really gray line. Also you have to have a licensed contractor that can pass a background check do the work. Unfortunately the government is cracking down on loan requirements so renting your current home to purchase a smaller multi-unit most likely won't qualify (a few of my investors have run into this problem). Reach out to a lender to confirm.