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I am looking to purchase my first building and I am currently weighing the pros/cons of two main strategies.
One is to fix and flip/hold SFHs and the other is to fix and flip/hold multi units.
I have been doing a lot of reading about FHA loans allowing you to purchase and finance your rehab. It seems you can have as many FHA loans as you want as long as your previous loans are at atleast 75%LTV.
I know this strategy works with cash purchasing then refi but would it work with FHA.
-I buy a 3 flat forclosure for 100k and put 35k into rehab so 135k total invested. The ARV at a 10%-12% cap calculating for conservative rent, maintenance etc estimates puts it around 200k. So 25% equity would be 50k. Since I have only 135k invested would I be able to get a reapprasal post rehab thus shifting the LTV to 75% or better and qualify for another FHA loan?
If not would I have to refi traditional inorder to get another FHA loan.
One is to fix and flip/hold SFHs and the other is to fix and flip/hold multi units.
I have been doing a lot of reading about FHA loans allowing you to purchase and finance your rehab. It seems you can have as many FHA loans as you want as long as your previous loans are at atleast 75%LTV.
I know this strategy works with cash purchasing then refi but would it work with FHA.
-I buy a 3 flat forclosure for 100k and put 35k into rehab so 135k total invested. The ARV at a 10%-12% cap calculating for conservative rent, maintenance etc estimates puts it around 200k. So 25% equity would be 50k. Since I have only 135k invested would I be able to get a reapprasal post rehab thus shifting the LTV to 75% or better and qualify for another FHA loan?
If not would I have to refi traditional inorder to get another FHA loan.
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