NACA Home As 1st Rental Property?

3 Replies

Before discovering the idea of REI, I purchased a home in unincorporated McDonough for $176K @ 2.5%. The loan was acquired through a mortgage program named NACA. The loan prohibits using the property as a rental, so I'm considering refinancing the loan and using it as my first rental, and using my cash reserves (I'm currently paying down debt and plan to save around $25K) to purchase another investment property as owner occupied, rehab it (sweat equity), and then put it up for rent as well.

Is this crazy?

Thanks.

It is not crazy... but if you are using NACA (I know of this program), why not purchased a 4 family home and live in one unit and rent the other 3 units out. NACA DOES allow you to use the property as a rental, but NACA DOES NOT allow you to move out of the property without getting another loan (I think you must plan to stay in the property for a number of years).