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Buying homes with FHA Loans
Posted on 7/6/20 at 12:47 pm
Posted on 7/6/20 at 12:47 pm
Is this a good way to flip homes?
8
Posted on 7/6/20 at 12:48 pm to Tigahhs97
Money board.
If you are on here asking this question you are over your head.
If you are on here asking this question you are over your head.
Posted on 7/6/20 at 12:49 pm to Tigahhs97
100% honesty here, if you’re asking this, do WAY more of your own research
What SG said
What SG said
This post was edited on 7/6/20 at 12:50 pm
Posted on 7/6/20 at 12:52 pm to Tigahhs97
I would assume just like any other sale the more equity you have the more you benefit from selling something for more than what you paid for it. Sounds like you’d be flipping for pennies.
Posted on 7/6/20 at 1:02 pm to Tigahhs97
Nah. FHA loan needs to be your primary residence for at least one year. You could commit federal bank fraud and not live there but I recommend against it.
Posted on 7/6/20 at 1:05 pm to The Mick
quote:
FHA loan needs to be your primary residence for at least one year. You could commit federal bank fraud and not live there but I recommend against it.
I knew a guy in Cali who financed a quadplex with FHA loans and allowed him to tie-up a $1Mil site for like $40K. He then lived in one while fixing up one, then moved into the next, renovated the next, rinse repeat until he had 4 stabilized rental properties.
He made an absolute fortune on it. Not sure how he was able to do it, but he killed it.
Posted on 7/6/20 at 1:08 pm to Tigahhs97
you can only buy a primary residence with a FHA loan. so the answer is NO
Posted on 7/6/20 at 1:16 pm to Tigahhs97
If you're flipping a home you're most likely looking at hard money. Homes that are set up to flip traditionally have issues and those issues don't usually allow the property to qualify for FHA financing.
As someone said above a quadplex would be the only real chance you have to do a flip or use as an investment due to the fact that you only qualify for an FHA loan if you live in the property.
As someone said above a quadplex would be the only real chance you have to do a flip or use as an investment due to the fact that you only qualify for an FHA loan if you live in the property.
Posted on 7/6/20 at 1:35 pm to Tigahhs97
fha not the way to go; conventional is the way to go if you're flipping
Posted on 7/6/20 at 1:56 pm to Tigahhs97
Posted on 7/6/20 at 1:57 pm to NolaLovingClemsonFan
quote:
I knew a guy in Cali who financed a quadplex with FHA loans and allowed him to tie-up a $1Mil site for like $40K. He then lived in one while fixing up one, then moved into the next, renovated the next, rinse repeat until he had 4 stabilized rental properties.
He made an absolute fortune on it. Not sure how he was able to do it, but he killed it.
This is what they call house hacking. Great way to get your foot in the door with real estate investing if you do not have a ton of cash up front.
Posted on 7/6/20 at 1:59 pm to TH03
quote:Exactly wrong.
I would assume just like any other sale the more equity you have the more you benefit from selling something for more than what you paid for it. Sounds like you’d be flipping for pennies.
Posted on 7/6/20 at 2:00 pm to NolaLovingClemsonFan
What he did was completely legal by occupying one unit as his primary. He paid a dump truck ton of FHA mortgage insurance each month but once he had them all rented, he was rolling.
Posted on 7/6/20 at 2:00 pm to TH03
quote:
I would assume just like any other sale the more equity you have the more you benefit from selling something for more than what you paid for it.
Actually the exact opposite is true. Your profit margins are higher the more leveraged you are on a property.
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