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Updated almost 7 years ago on . Most recent reply

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17
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Julian John
  • Real Estate Professional
  • San Antonio, TX
3
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17
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Buy Rehab Refinance for Primary Home?

Julian John
  • Real Estate Professional
  • San Antonio, TX
Posted

I was wondering if anyone has tweaked the BRRRR strategy for their primary home?

Most Popular Reply

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Michael Ablan
  • Real Estate Broker
  • Watertown, NY
1,097
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1,239
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Michael Ablan
  • Real Estate Broker
  • Watertown, NY
Replied

I don't really understand what you mean....

The best "tweak" I know for a primary residence is to use a FHA 203k loan. This will allow you to buy a fixer upper and finance the rehab cost, while only requiring a 3.5% constribution from you.

Not only do you get to create equity from the rehab, but you also get to live in a brand new home, which you can sell capital gains tax free in 2 years.  It's a pretty sweet deal

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