Buying My First Rental Property
Good afternoon everybody! Please give me tips, ideas, insight, a reality check.
I am 26 years old looking to purchase my first property. Unfortunately, I went through a chapter 7 bankruptcy that will be reaching its two-year mark on June 3rd. I watched many videos, listen to many podcasts, including that of bigger pockets, Jullien Gordon, and many others, as well as read several books.
I want to purchase a triplex with a naca loan. I will have $10,000 saved by June and want to purchase in LA. I am curious if:
1. this is actually feasible
2. if I should purchase in LA?
3. Or perhaps purchase a single-family home in another state where I may need a little more in down payment but start my passive income portfolio.
I appreciate any and all advice as well as a reality check on what is and isn't feasible at the moment.
Most Popular Reply
@Marvin Byrne My two cents, I closed a four unit with the NACA program in 2019 and $10,000 wont get you where you need to be. Loan costs alone will probably be $3-5,000 even with the Naca-assisted loan closing cost help. That leaves you with 5k for property renovations.... that is about 5-10% of what you would need in LA.
Next, NACA is very slow. This is a sellers market and with the speed at which you can make an offer, the property will be gone. Even the ones that sit for some time, NACA Is an FHA style loan program and unpermitted/illegal construction properties are the ones that sit which you will run into issues with NACA.
My advice is to save more or buy out of state, but again, $10,000 is just not enough to buy an IP that can cash flow.