203k loan and refinancing

[Jay Sechowicz]

Hello all,

    Earlier this year I purchased a duplex in Philadelphia and am currently house hacking.  Everything has been going well for the most part, but we are getting tired of living in such close quarters with out tenets quicker than we anticipated.

This brings me to my question. In real estate, a common goal is to use as little of your own money as possible. So, I want to apply some of my investing strategies to my own house which will be my primary residence for the foreseeable future. I want to find a fixer upper and debating on using a FHA 203k loan or not. We could get into the property with out the 20% down and have the renovation costs financed. This is where I need help. I know I need a licensed/insured contractor to do the work. But what is the process like from start to finish? I am not a contractor but I want to do some of the work myself (demo,painting , etc) to cut costs. Is this allowed? If so, do those numbers need to be factored in when contractor gives estimates?

  Also, once all the work is completed I want to refi into a conventional mortgage and get as much money back out of it as possible.  I am not extremely worried about getting all the cash back because it will be my home, not as much of an investment.

  If anyone has any experience with these types of loans I would love to get as much info as possible. Need to pick someones brain the has a full understanding/experience.

Thanks,

Jay