All Forum Posts by: Christopher Iafelice

Investment Info:

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

Purchase price: $35,000
Cash invested: $75,000

2 family acquired for 35k, renovated for 75k and cash-out refinanced @ 70% LTV for 235k, with gross monthly income of 2.8k

That isn't a bad option though. With a lower down payment, it would enable me to utilize the funds I have for the renovation, which I already have a team in place for. The only catch would be narrowing my search to property not in dire need of repairs, but with rehab costs on the lower end. This may result in a smaller margin of course, but would seemingly aid my efforts to secure my first investment. And from what I've read, it's "easier" to obtain financing after you've established some equity, so I suppose it's a step in the right direction.

Seems a little overwhelming for a homebuyer, but probably in the best interest of the lender/buyers. I'm just trying to find the best financing options available for someone just starting out, with good employment income, but not a ton of cash reserves.  I do appreciate the information and thank you for spending the time to outline it for me.

The program seems to be more in line with homebuyers interested in property they can live in while renovating, then ultimately selling (hopefully for a profit). Some Multi-family homes eligible for FHA loan financing appear to be an option as well, but again, something the investor would live in. This may not help seasoned investors, but rather, those just starting out with limited cash reserves.

Does anyone have experience using the FHA 203K Loan program?

I'm in NJ, and I've been looking for ways to puschase property using a low down-payment option to ease the burden of chewing up capital in the beginning stages of my investment goals.

Appreciate the help and thanks again,

CI