Buying my first property.

[Jonathan Alvarez]

Hey BP community, looking for some guidance on my situation. My lease ends in March of 2027, I am looking to stop renting and get myself into a home. House hacking or a live in flip is what I want to do. A duplex is ideal for my situation but I haven't seen many on the apps I've been looking on. I am a union electrical Apprentice so I plan on putting in a lot of sweat equity into the property. I am a veteran so A VA loan is what I plan on using, unless anyone has better suggestions. My question is, should I focus on paying off my debt which is credit cards and a car loan roughly about $20,000 in total and go to the closing table with no debt with enough for closing cost and a little bit in reserves or should I focus on saving more for closing costs and reserves and go to the closing table with more cash in the bank account? I was thinking having about $30,000 for closing costs and reserves for a multifamily would be enough, is that be realistic? I'll be earning around $90,000 stating in May 2026 with another pay bump in 2027. Thanks in advance I'm excited to become a part of the community.

[Joseph Beilke]

I'm not at all familiar with the Chicago area, but I can chime in regarding earning more cash flow with your plan.

I would do a little of both—pay down your credit card while also saving the amount needed for closing costs, as well as additional funds for fixes, replacements, and repairs. The property you should focus on is one that needs improvements and upgrades but is still good enough to pass a VA appraisal inspection. You can live on one side and make the other side a very desirable rental. That unit has the potential to bring in top rent with a great tenant, and in the meantime, you can work on upgrading the side you live in.

With a 100% loan, it's unlikely you'll be able to cover the mortgage with rent from only one side, but your cost of living will still be reduced. This will give you extra money to save toward another property, allowing you to make a larger down payment and fix it up for another great tenant.