Utilizing a FHA 203k loan to purchase 4 unit property

[Bradley Scruggs]

Investment Info:

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

Purchase price: $560,000
Cash invested: $130,000

2 duplexes located on almost a 4 acre lot in North Kingstown, RI

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

4 units are hard to come by in North Kingstown but to also have almost 4 acres aswell is a big plus. We intend on building another 4 unit on the property.

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

We utilized our realtors who found it on MLS

How did you finance this deal?

We used a FHA 203K Loan. We had to bring 3.5% to closing.

How did you add value to the deal?

With over 90k financed into the loan we focused on getting the property to livable standards. As we move forward we will slowly modernize each unit so we may obtain more income.

Lessons learned? Challenges?

To many to count. If you have a solid loan officer on your team I would aim for a. FHA 203k loan due to the low closing cost.