All Forum Posts by: Robert Johnson

Hey BP!

I have recently been making my first moves on my real estate career by selling my single family home I got a couple years ago and buying a 4 plex in McAllen TX. The 4 plex is in process right now for an FHA 203k loan. My purchase price is 255k and I expect to have about 50k in repairs to bring the property back up to snuff. My ARV should be somewhere in the neighborhood of 400k. I was wondering if anybody else had experience with refinancing out of the FHA? My goal is to get the property to the point that I have a 25% LTV so that I can refi into a conventional investment loan (and hopefully house hack another small multi with another FHA). Some questions I have:

How long do I have to "season" the FHA loan before I am able to Refi?

Is there still an owner occupancy requirement if I am able to refi before 1 year of owning the property?

Thanks in advance for the insight!

@Boone Tyson that does seem to be the issue I am running in to. The contractors themselves seem like it won't be too hard to fill as I just need them licensed, bonded, and insured. I will just have to make sure I explain well how the 203k loan works and how they will be paid in draws. The hard person to find right now is a hud certified consultant. They had 3 listed in the RGV on the HUD database and none are in the business any more. It does sound like I may be able to use a remote consultant and just pay a local licensed inspector to take photos to send to the consultant. It's going to be a lot of fun! Close date of May 20 🥳

Hey guys,

I am really excited to say I have just got a 4 plex under contract in McAllen TX that I am planning on house hacking with and FHA 203k loan. I am looking for any recommendations on contractors in the McAllen, Mission, Edinburg area of the Rio Grade Valley that are familiar with the 203k loan program? I know already that the big issue is going to be replacing the roof of the property, but pending inspection I might need a whole team to help bring this property up to snuff. Thanks in advance!

@Kelby Cox good luck with the build! I would love to hear more about how that goes when you get it finished! 

Hello Kelby, I am working on trying to find my first 4 plex here in the McAllen area right now. Most of the valley seems to have pretty stable tenants. The exception to that is in Edinburg near the university those units seem to turnover fairly regularly. I’m running in to the issue of all the tenants being on year long leases and I won’t be able to move them out to owner occupy. I’m hoping to have my deal done by mid May. Best of luck to you!

@Suraj Nagrani I wouldn’t really pay much attention to the words of someone who doesn’t live here in the RGV. It is right across the border from Reynosa MX, but as long as you are buying in non war zone areas you could have a very profitable investment in the valley. I’ve lived here 2 years now and never had much of a problem with any of the things she outlines.

Hey BP,

I have a showing scheduled tomorrow for a property I am looking to BRRR. The property is a duplex currently being used as a boarding house for some of the less than ideal tenants. I am interested in the property because it is in the path of progress for our booming downtown, so the property in the long term should appreciate quite a bit. My numbers show about $200 a month in cashflow (not ideal, but willing to take it to get the experience and also my belief that it will appreciate). If anybody has any tips or tricks I should look out for I would really appreciate the insight! Thanks in advance.

@Heath Ryans I will definitely try to make it out there this week then! Thanks for the info!

Hey BP,

I was wondering if there were any meetups in Johnson City area going on right now, or anyone interested in networking. I'm from here live in TX right now, but COVID has brought me home for the foreseeable future. While I'm here I'm looking at getting into either a flip or even better a BRRRR. Don't have a ton of experience in it right now, but I have the time and enthusiasm for it so anyone looking to maybe partner up could work too. Thanks in advance!

@Jaysen Medhurst sorry about that. Didn’t see the link when I was on my phone. Thanks for the information!