All Forum Posts by: Matthew Porcaro

@Chance Brookins

Look into 203k loans more. You can purchase distressed properties with only 3.5% down. You need to live there for at least a year.

I’d look for small multifamily, and live in one unit and rent the others. That’s what I did on my first deal.

I’ve since moved out and rent both of those units. I also have $130k of equity in the property, which I use to buy more rentals.

@Stephanie Dean

Head to Angie’s list and home advisor and look for big construction shops with bigger overhead.

Little guys can’t bond themselves and they end up running out of money too fast.

@Matt Grubb

Couldn’t agree more! I learned the hard way haha

@Raeshelle C.

Go to the 203k consultant directory and call down the Rhode Island list. Ask them for referrals to banks and contractors they know well.

That way you find people that are actually FAMILIAR with the process.

@Matt Grubb congrats!

I did the exact same thing on my 203k loan! Duplex and rehabbed it and built a solid $130k of equity :)

Good luck! Reach out with any questions

@Stephanie Dean

Does the 203k consultant know any other contractors willing to take it on?

On my 203k, I was in a situation where I bought a duplex, intended to live in one unit and rent out the other. After 8 months, I was able to refinance after the rehab into a conventional loan. 

Now, don't quote me on this, but I don't it's breaking any kind of rule or law if you refinance out of the FHA loan, and then no longer adhere to their requirements. In my case, I shortly after got engaged, and moved out and in with my fiancee.

The main point is, this isn't an investor loan, and like it was mentioned above, claiming you're going to do something that you're not on a mortgage is a slippery slope. 

What I would advise is look into small multifamily properties like I did, where your other tenants can pay down the mortgage, and then when you're ready to make another life move, or you can refinance out, you can move out of the property and rent out all of the units. 

If you ever have any specific questions about 203k loans or projects, let me know! This is exactly how I got started. Best decision I ever made. 

Feel free to PM me anytime. Good luck!

203k was exactly how I got my first property. It's what jumpstarted my career. 

Focus on looking for distressed 2-4 units on homepath.com and other foreclosure websites. If you want to expand, work with a local realtor and tell them you're looking for the same. 

However, before all of that, I'd look for an EXPERIENCED 203k lender that understands the loan and can tell you how to get started. 

 Hi Hanna! 

It's as simple as googling your state followed by 203k mortgage. Be sure to interview them and ask them for references!

I lived in the property for around 8 months, then after the rehab I got it re-appraised and refinanced out of the 203k FHA loan.

So yes, you can get it re-appraised, and you should!

Feel free to DM me with any more specific questions!