When it comes to real estate investments, taking your first steps and getting your foot on the property ladder is often the trickiest stage. One of the most popular options for aspiring property owners is renovating a duplex: Duplex properties offer both rental income and potential appreciation, making them an attractive option for investors.
But what if you need financing to fund the renovation? This is where an FHA 203k loan comes into play. FHA 203ks are limited to owner-occupied properties, so in most cases they aren’t suitable for investment properties. The opportunity duplexes provide to use a FHA backed renovation loan while also gaining a passive income is fairly unique in the real estate world, especially for first-time owners.
In this guide, we’ll explore how to find suitable properties, locate a qualified FHA 203k contractor, understand the nuances of 203k loans, and discover valuable tips for renovating a duplex for investment.