American's bred and born in America are less apt to see the potential for the FHA 203k to build wealth, but foreign born Americans see it right now and access this powerful strategy to get established and make money in America.
In the mid to late 1990's it was the Hispanic immigrants that were
taking advantage of the FHA 203k program by the hundreds if not
thousands. They would purchase a four unit building and rent out the
other units to family members and know they were going to get their rent
every month, then we saw many numbers of our Asian brothers and sisters
doing the same thing, and now we are seeing it with immigrants from the
middle east and the Hispanic community is doing it all over again.
This is a unique way to get one family established in America, rent
out two units which typically can cover the mortgage payment if you do
it right, you live rent free in one unit and the forth unit brings in
Realtors who are catering to this client base should be on the
lookout for mixed use buildings with three and four flats over a store
or two, or 5-8 unit buildings that can be converted to four four-bedroom
units to maximize the rent potential. I have seen a four bedroom single
family home that was fire gutted sold for $2,500 to an FHA buyer and an
eight unit building that had been vacant for years sitting there gutted
to the studs that sold for $2,500. These we call "cash cows" because
the rental income for a four bedroom unit is considerable.
Ten years ago in SF one of my clients was able to get $2600 per each
of his three four-bedroom units, and the second example above we talked
the housing authority into taking over the entire building so the client
was able to have 100% of their rent electronically deposited on the
first day of each month. He was able to let an inherited building
provide his retirement secure income on a mixed use building. It was
exciting to see him as he realized a long time dream that he never felt
he would achieve as it unfolded to reality for him. Did I mention that
he lives there in a newly fixed up studio apartment in his own building?
Section 8 tenants requires a whole lot more training...
Mike Young, 203k Team Leader
With offices coast to coast and HQ now at PMB
168, 5055 Business Center Drive, Suite 108 Fairfield, CA 94534
1.707.812.7668. We have ten offices in CA covering both CA states,
NorCAL and SoCAL
To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.
Skype name: the203kconsultant