FHA is a great loan however they are VERY picky with appriasals... also the multifamily property determines the loan, theres straight FHA, then there's 203k loan program that allows for rehab/repairs.

I'm an hvac guy and my usual ticket for a simple repair is $150, which will wipe out cash flow very quickly.

If this is your problem, then what is it worth in good condition and what does it need in repairs to put it in good condition?

You need closing money, down payment, money to start repairs, buffer money for repair overages, insurance, points/interest, utilities ..

I would think they will require you to show LC, repair breakdowns and all sorts of stuff if your going to pull cash out.

One nasty or screwed up tenant and you'll be halfway to $6000 in repairs alone.

Although if they have 165,000 in it then at 190,000 they would be at breakeven or a little profit maybe after resale costs.Sounds like maybe the seller underestimated the amount the repairs would cost on the property and are trying to dump it now and limit losses.

Could put a carefully selected short-term renter in there for 6 mths to cover overhead, then do your repairs in the winter and list it next spring, targeting a signed contract at the 12-mth mark.Of course, you can try to sell it for cash to a hedge fund after you repair it.

I think they do a top notch job, but every once in a while I get a bill for repairs that makes me fire off an email.I don't mind being in 5 states.

How do you repair scratches and such on the brown stained trim?