All Forum Posts by: Ryan Allison

Theo, I agree with Chris. I would definitely look into the FHA 203K loans. I don't have experience with this type of loan but if I was doing a house hack or live and flip I would definitely consider this.

The pros are that you get a low downpayment and upfront construction costs.  I believe for streamlined 203K loans you can get up to 25,000-30,000 relatively easy.  If you want more than $30,000 in construction costs, from what I've heard it's definitely possible but you need to be prepared to explain what these costs are for (mainly explain that your costs are for value add).

The cons are that the FHA loans have a higher interest rate than normal loans and sometime do not have the automatic drop of PMI as other lenders do (as Chris mentioned). It sounds like you're looking to start off with a househack... if you do wind up using an FHA product I would add in the cost to re-finance after you get above 5% equity or the construction is done.

I would also be cautious that for the FHA 203K loans, you need to have a licensed contractor do the work... you might want to factor this into your analysis as well.

Sounds like your on the right track though!  I'm also starting to look at Orlando / Tampa market so let me know if you want a second set of eyes on anything.  

I'm located in New England and I've been looking into investing out of state (most likely low risk turnkey SFH or 2-4 unit multis to start) where properties are much more affordable . Based on the podcasts and research that I've done so far, I'm leaning towards looking into the following markets to invest for 2020:

- Tampa / Orlando

- Atlanta

- Charlotte

I realize that these markets all have been very popular for sometime, but it seems like these cities still have a promising future.  I'm looking for opinions on these markets (and others that I should consider!).  If anybody has any agents that they recommend in these markets, please let me know.  

Thanks,