FHA 203K loan Duplex

[Consuela Adams]

Seeking Advice: I'm looking to buy a duplex property in Atlanta with an FHA 203K loan, found the property myself off market. The property would generate excellent cash flow with more that 9% of cash on cash return. I believe this would be a excellent BRRRR property. It is in a excellent school district. How should the off market deal be structured on a contract when no Real Estate Agents are involved? What other funding could I use for closing and the down payment if I have no cash to fund the deal?

Thanks for any feedback

[Brie Schmidt]

@Consuela Adams - you need to talk to a lender and see if you qualify.  Typically you need the 3.5% down plus closings costs and 3-6 months f mortgage payments as reserves to qualify for the loan.  Closing costs can be paid for by the seller but you still have to have the cash in your account and available to get approved for the loan.  You also may need to pay the mortgage payments during construction while it is vacant