203k Benefits to Buyers/Borrowers (not all inclusive) Renovate home with little/no additional out-of-pocket expenseLow down payment (3.5%)Combine purchase/refinance + rehab funds into one low-interest, tax-deductible mortgage which is based on the improved appraised valueInclude mortgage payments into 203k if home is not livable during renovationsSubmit a strong purchase offer if presented properly to sellerBuyers face less competition from other buyers to purchase fixer-uppers, foreclosures or older homes that are outdatedBetter opportunities for "good deals" on home purchasesAbility to purchase properties that may not meet FHA standards and complete the repairs/improvements AFTER the home is purchased.Select from a larger selection of properties for sale (in any condition), including condos, townhouses, mixed-us, multi-family, single-family dwellings and those that do not currently meet FHA standardsWhen offer is presented properly to seller, 203k offers may be advantageous in a competing offer situation as the seller does not have to fix-up or repair the property but instead allow the buyer to include these items into their 203k mortgage and complete the improvements after closing using the buyer's own style and design.203k Benefits to Home Owners & Sellers (not all inclusive)Market property to more buyersAllow buyers the opportunity to renovate, upgrade or improve to suit their tastes and preferencesNo need to settle for low-ball cash offersCurrent condition of property not required to meet FHA's property standardsBuyer is permitted to correct any property deficiencies after close of escrowNo more inspection concernsAbsolutely no repairs are required prior to close of escrowSeller not responsible for cost of repairs/improvementsTransaction will close with property in "AS-IS conditionClosing occurs in 45 days203k Benefits to Realtors® & Lenders (not all inclusive)Increase income by selling more homes and originating more loansRaise real estate values by improving homes and neighborhoodsDecrease foreclosure inventoryHelp buyers who previously could not buy homesHelp seller/owners with properties in outdated or fix-up conditionSpur economic growth by creating job opportunities for the construction/remodeling industryPromote an under-utilized niche program that not many Realtors® or Lenders understandRevitalize your community203k Disadvantages (not all inclusive) upfont MIPMI for life of loanSupplemental origination feeInspection feesTitle update feesmore complexmore moving partshigher interest ratepossible longer closing timeBut working with the right 203k Lender, a contractor with education/experience with the 203k, such as a Certified 203k Contractor, the benefits can definitely outweigh the disadvantages.

I’m going to upgrade the gel hybrid as it is showing divots or wear after just a year.

How do the finishes and upgrades compare?

We have been through two duplex transactions both with existing tenants.nice to have the immediate cash flow, but that comes at a price.One was the classic biker gang, unregistered trucks in the yard, difficult tenant situation.This was a great learning experience, but it took us several months to clean up and upgrade the place and the tenants.

Turnkey you pay a lot of premiums and the spreads are not that great, but they can be fairly reliable as long as you confirm the renovation upgrade taxes have been confirmed.

All light fixtures were updated, some electrical repairs were made and upgraded the electric panel to 200 amps.

Upgrade units with complete HVAC systems and new water heaters.

I'm in the process of closing on an investment property in the Philadelphia area(zip code 19139) and am looking for a contractor to work on some repairs & upgrades.

Plumbing was already conveniently in the walls, (it backed up to the main bathroom), so all I did was upgrade the counter top electrical with GFI's & a separate outlet to the dishwasher.

It did cash flow (slightly) for me for the past year or so and now I'm ready to upgrade the entire property and flip it.