The boom of Real Estate Sales of the near past is slowly losing its thunder.  There are, however sounds of a snap, crackle, and pop indicating that savvy investors can take advantage of this housing surplus.

A question that I get is, How Long Must I Hold  A Property? Good question.  Typically, you should plan to hold your FHA property at least 4-6 months before closing again.  Here are some key points along the way:

1. any resale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing (You can get a contract within this time period if you decide to  market the property for resale.  However, it is best to know that you will need to close at earliest, on the 91st day. )
2. Resales that occur between 91 and 180 days, where the sales price doubles or exceeds the previous sales price by 100 percent or more, FHA will require additional appraisal documentation validating the property’s value.
3. Additional scrutiny can be done by the FHA if re-sold within the first 90 days.

This is good to know, as a large percentage of loans these days are FHA AND it is good to help you as an investor on your buy and hold strategy.

Example:  The house pictured above is selling for $39,900 near downtown Atlanta.  If you purchased it and after costs, were able to get out of the deal at $40K, and you put $10K repair into it, (presuming it needed that much), then if you sold it for more than $80K between 91 days and 180 days, you would need an FHA appraisal validating worth.

PS... it may not be that hard, since a quick glance at tax records shows another 4 BR 2 Bath within 0.3 miles that last sold for $80K.  This would be part of the appraisal done by the FHA.

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