Possible to use FHA for BRRRR?

[Vishal Patel]

Hi all, I'm new to real estate investing and am looking to get started. I've been doing a lot of reading on the various strategies out there, but am particularly interested in the BRRRR method. Is it possible to secure a multifamily property using an FHA loan initially, fixing up the other unit(s) and getting them rented out while living in one for a year, and then refinancing out the majority of my money (initial downpayment and rehab costs) out provided the ARV is 25% above my all in cost?

If so, when refinancing, does it have to be a conventional loan with 75% LTV or would it still be an FHA?

[Christopher Phillips]

@Vishal Patel

Yes. If you plan to occupy one of the units in a 3 family you can use a 203K to rehab. You only need to intend to live in the unit for at least one year.

2-4 families are evaluated based on recent sales just like single family.