the value added versus cost to add, especially in single family zoned areas, typically results in a large negative initial position.  

Purchase price: $317,000 Cash invested: $55,000 I acquired a Quadplex in 2021 with an FHA loan, investing ~$21,000 in down payment and closing costs, plus $30,000-$35,000 in remodeling.

Park Hill has always been sought after, but this will only increase it’s desirability…..

While under contract, we perform due diligence and there will be some soft costs incurred. 

During our tour, the property appeared to be in good condition, and we were comfortable negotiating the seller's lack of repairs, provided the cost did not exceed $2,000.

These products allow you to purchase a home that may need some work and roll the renovation costs into your mortgage. 

The main thing is making sure your investments produce a return that outweighs the cost of the borrowed money.A full cash-out refinance could work down the line, but with rates where they are, you’d be trading a 6.25% ARM for something likely higher, now that it is not an owner-occupied property, which may not be worth it unless you really need the capital to scale.

Additionally, the cost to create a business here is not as inexpensive as the United States, in some cases it can cost thousands of dollars to setup. 

Our rehab cost estimation comes from researching the area and talking with local investors that have similar properties. 

@Jordan BrownSince Orange County and Santa Barbara have high housing costs, using an FHA loan for a house hack could be a smart move, allowing you to put less money down while securing a property.