Hml to be financed fha after a year

[Michelle Chowan]

Hello! We have a multi family property with an accepted offer ( hard money loan) that we plan to house hack for a year and then finance FHA. (FHA is our only option due to past bankruptcy and foreclosure.) What are some viable exit strategies to use? This is our first deal and I'm a bit nervous because the FHA is super strict and this house seems to have foundation issues. (SUPER sloping floors.) The house cash flows maybe 5k a year, I say maybe just because some numbers are still in question, but is in a very family friendly up and coming town with the rest of the house super fixable. Thoughts? Opinions? Inspection is tuesday.

[Brandon Johnson]

@Michelle Chowan

That 5k a year cash flow can become negative very quickly if your foundation truly is bad and isn't factored into your numbers. Refinancing is a good exit strategy, but as a primary residence it's worrisome that you can't make the initial purchase using the the loan that you intend to refinance into. Do you have a plan to make the property fit FHA guidelines? Have you factored in those cost?