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?
I don't think that's crazy.
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).
The benefit of NACA is that you are allowed to buy down your mortgage interest to basically 0%.