2nd FHA 203k HOUSE HACK!!!

[Jean Torchon]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $252,000
Cash invested: $50,000

This was a HUD purchase just like my first deal. I was able to utilize the $100 down payment assistance program and only had to pay for my closing and holding cost during rehab. I refinanced out of my first FHA203k loan making me eligible for another. Closing took 8months due to Covid but worth it, especially with the way the market appreciated. Up almost 100k in equity and currently shopping for a HELOC.

What made you interested in investing in this type of deal?

Was a no brained after the succes of my first FHA 203k loan. Just a matter of finding the right deal

How did you find this deal and how did you negotiate it?

I'm a licensed broker so I was able to find this deal on the MLS. Sacrificed my commission to the seller in order to be more competitive

How did you finance this deal?

FHA 203k loan $100 down program

How did you add value to the deal?

Updated both units too to bottom
added 2 full bathrooms
Finished the basement
Converted the attic into a master suite

What was the outcome?

Phenomenal cash flowing property in one of the best areas of town

Lessons learned? Challenges?

Don’t be afraid be aggressive in your offers. If your strategy truly is buy and hold for the long term. No need to penny pinch on the purchase price. So long as it stays true to your numbers and strategy

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Charlie Masse of mortgage force is the best local mortgage broker I’ve encountered on my journey. Leads with education