Saving to circumvent "1st Time Property" issues.
Hello All,
DB from Chicago here! I have a question for anyone willing to provide wisdom and honesty.
So, I consider myself in the "pre-newbie" phase (the phase where most people decide to take action, become an investor, educate themselves, pay off/down debt, build their credit scores, save up money, network, etc.). I am currently paying down debt and saving towards my 1st Income Property.
I desire to do the following:
-Purchase a distressed 3/4-unit Income Property, Owner Occupied (House Hack)
-Rehab the property via a 203K loan (Chicago is an appreciation market)
-Once the property has tenants and the necessary systems to run effectively, save reserves for that property AND build savings for the next property (I am aware of the equity earned, but I DO NOT want to rely solely on equity & appreciation. I love saving and having that extra cushion).
I question what hidden fees may come with the aforementioned approach? I am greatly considering NACA in financing my first property and I am diligently looking for Down Payment Assistance Programs offered to first time home buyers and Chicago Public School educators.
What were the unforeseen fees, costs, and needs that you experienced? Of course the answers will vary per each situation, person, state, and county.
Thanks for the wisdom and advise!
DB from Chicago
Peace and Blessings