The FHA 203(k) loan is designed for owner-occupied fixer-uppers!

Hello I have a client who needs to do a purchase and rehab loan on a four unit property in New Orleans.

It would cost me $13,835 to get down to 6%, which would give the best value over the course of the loan.

If so, how many deals/loans do we need to do before I can expect more favorable terms?

Don’t forget to include the cost of the loan servicer. 

@Collin StewartSince you're PCSing to Columbia, SC, and have VA loan entitlement remaining, house hacking a small multifamily with a VA loan is a strong option since it requires zero down.

If scaling quickly is your goal, DSCR loans are a great tool for the refi portion since there’s no 12 month seasoning requirement like conventional loans, and DTI isn’t a factor. 

Here’s a breakdown of the main ways investors fund their first deal while minimizing their own cash outlay:1.Private Money & Hard Money Loans– These lenders focus more on the deal than on your personal finances.

In Real Estate, TIME IS MONEY.Getting a rehab loan done quickly is worth paying an extra few points in order to be efficient as you will be able to expand your BRR business which would yield results greater than the increased cost of capital that hard money brings.In order to escape a scarcity mindset you need to understand that money is in theory unlimited, they print it.But can you print time?

I’d also look into using an FHA 203k renovation loan, allowing me to buy something unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.