Make sure you’re working with a lender who has experience with 203(k) loans and a contractor who understands the program’s requirements.2.Loan Process Can Be Slow – Unlike a standard mortgage, the lender will be heavily involved in the renovation funds, which means more paperwork and potential delays.3.Strict Repair Guidelines – The work has to improve the home’s safety and livability, so luxury upgrades usually don’t qualify.4.Living Through Renovations – If you go with a Limited 203(k) (up to $35K in repairs), it’s usually manageable, but for a Standard 203(k), major work might require you to live elsewhere for a bit.It’s a solid strategy, just make sure you’re working with the right lender and contractor so things go smoothly.

We have seen maintenance costs skyrocket over the past 2-3 years and every case is different but here are some general guidelines for reputable (non-crackhead) investor level pricing in our area of operations:Furnace and A/C replacement with lineset for standard 3 bed 1 bath bungalow.

There are guidelines for owner occupant loans on how long you have to occupy. 

I am 100% in on advocating for doing more rehabs and leveraging Fannie and Freddie guidelines to do it, but you need a lot more stuff on these loans that will take you longer to do that is out of the ordinary for rehab/flip. 

I'd be willing to bet that there are plenty of small time developers in your market who would be happy to trade knowledge, experience and equity for your experience and services. 

Quote from @Rene Hosman: I would agree, speaking with a LOCAL lender who understands the area would be your best bet if you're having a hard time finding comps then an appraiser is also likely to have a hard time  Thanks Rene, will give that a shot!

The actual guidelines dont mandate one full year, but in the scenario you're describing, it would need to be your primary residence for at least one year. 

Underwriting guidelines are typically 20% down (minimum) and showing cash reserves of 6 months for all your properties.  

@Nick Belsky these guidelines are for US Citizen living abroad with income on 2255?

Hi @Alex Lee I would avoid 203K loan and work with conventional renovation loan based on knowing you'll be forced to use 203k certified contractors which will cost more money and offer inflated pricing because they must follow 203k guidelines.