Let’s take a moment to discuss how the 203k process may benefit real estate investors.

First, the bad news. In today’s world of reality shows, the popular concept of a real estate investor is a person or team who buys, and then within a few short weeks, will repair and sell the property at a profit, having never lived in the property. That is not a business plan supported by HUD as HUD requires that the property owner live in a property for one year after all repairs are complete.

But now the good news! HUD allows a person to buy and repair not only single family homes, but you can also buy and repair, with a 203k loan:

  • A duplex, that is, a home with two living units
  • A triplex, which is a property with three living units, or
  • A fourplex, a place with four living units.

The only condition is that you live in one of the units for at least one year after repairs are complete.

You are obviously allowed to rent out the additional unit or units.

Use the LearnTheK website to find the renovation professionals in your area.

We wish you the best on your project!