All Forum Posts by: Nicholas Jackson

Quote from @Kumar Kuri:

I’m on naca mortgage since 5 years. I need to relocate on my job change. How does the soft second lien my mortgage works? And can anyone let me know how to get around on my second lien?

From what I can tell if you need to move because of work you should be able to call and explain the situation to NACA and they would remove the lien.

Quote from @Benjamin Sulka:

Nicholas, 

Congratulations! This is awesome. 

How does one qualify for the NACA program? Would you be willing to share more about your experiences here?

Thanks so much and all the best! 

 I would love to share my experience and answer any questions you have! The qualifications primarily deal with income. You have to be below a certain income level to qualify for their specific loan product. The program is designed to provide housing opportunities to lower income families. Due to my current life situation I fit right into their set rules so it was the perfect time for me to take advantage of their product. If you are interested I would highly recommend checking out their website and signing up for one of their initial workshops. It could answer a lot of questions on if you think it's a program you want to utilize or if its not really something you would be comfortable using. Here is there website! 

https://www.naca.com

Quote from @Jonathan Klemm:

Congrats on what sounds like an awesome deal @Nicholas Jackson!  

NACA is an awesome program...was there any good lessons learned from using the NACA program specifically?

If you are ever up in Chicago please look me up!

 Thank you! Yes I learned a lot of lessons from their program. I would say some of the most important lessons were that you have to be on top of everything. Not everyone is gonna hold your best interest in mind so you have to take charge make sure you got all the forms and documents you need, keep track of everything you do and all the changes you make in your life, and make sure your fully ready before takin the leap into purchasing. Just because they offer a great deal does not mean the process is going to be easy so you have to be ready for a lot of work! 

I am originally from Chicago land area! I will for sure reach out when I'm around. Might even have some potential deals from a connection going down there!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $180,000

Househack purchased through the NACA program in October of 2022. Tenants placed in September of 2023 at 950 a month. Will most likely double this amount upon moving out for a total of 1900. This would bring in about 600 a month in cash flow after expenses.

What made you interested in investing in this type of deal?

I wanted to cut my living expenses and essentially live for free. I wanted to buy a 2 to 4 family to bring in extra income, cut my expenses, and allow me to save up more money to be able to afford future deals down the line.

How did you find this deal and how did you negotiate it?

I found it on the MLS and I had my agent negotiate the price down from 190 along with the seller providing a few more final fixes before closing on the deal.

How did you finance this deal?

I financed the deal through the NACA program. I was able to purchase the home at a lower than market interest rate of 4.75% at the time along with no money down, no closing cost, and no PMI fee.

How did you add value to the deal?

I have since added value to the property by providing each unit with a dishwasher, one unit I installed a laundry room, and I got a garbage disposal for one of the units. New windows were installed in both units as well.

What was the outcome?

I have lived in the property for over a year now and have had tenants in the other unit for the last couple months.

Lessons learned? Challenges?

The lesson I learned on this is that you don't know what you don't know. There are a ton of things that are involved with not only owning a property, but how to manage a property whether that is for yourself or for others. You need to budget for expenses and this budget should be extensive, I would say roughly 10 to 20% of the purchase price. You never know what you may need to fix and what expense might occur. Also location, location, location! the location can alter everything you analyze!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My agent has had quite a bit of experience in the area and in multi-family investing and she was able to keep me in line with my goals and help me find the most ideal property for my needs!

I had a unit available in South city in Saint Louis. I had it listed for 1100 and was a 2 bed 1 bath with off street parking and dishwasher. I never got anyone serious although I got a fair amount of inquiries. When i dropped to 950 I got a ton more and the place was booked in less then 2 weeks even though I had it up for over a month at 1100. If its not renting it usually is the price. Lower it 100-200 ish and see how things change for you.

Quote from @Anthony Freeman:

Quote from @Nicholas Jackson:

Quote from @Anthony Freeman:

Has anyone ever utilized the NACA loan?

I used NACA to househack my current duplex

 Congratulations on the current success. From what I read it is a great opportunity. What state are you in? How was the process straight forward?

Thank you! It is a great opportunity but you always have to apply your circumstances to the situation. It wasnt a super easy process and they were overly strict on alot of the forms and documentation I had to provide in order to be approved. I started in February 2022 and closed in October of that year. NACA is also bery against investors so they have alot of rules about having to live in the property and liens places on the home to prevent selling in a certain time line. I highly encourage it for beginners that plan to live in the place for a while or has an exit plan that works around their rules as an investor. 

Quote from @Anthony Freeman:

Has anyone ever utilized the NACA loan?

I used NACA to househack my current duplex

As far as I have experienced the residency is all in good faith. No one checks or follows up with you. Also if you have a valid reason for moving you can get another home while still having a NACA loan from my understanding. Lastly the mortgage itself is through Bank of America so I believe other lenders just see that you hold a conventional loan with Bank of America

Quote from @Javon Wilson:

Hi Investing Community,

I plan on househacking after i finish living in an apartment. I know the situation varies from person to person, but would you rather buy a duplex or triplex for your first deal and why?

I think this question feels loaded where alot of people will just say the triplex but the reality is there are alot of factors that play into it. For me personally I would by the one i could reasonable afford, add value to, and be able to possibly cash out refinance more money from it a year later. Also I would heavily consider location. If the duplex is in the better area it might be better to consider than a triplex in a not great area.

NACA is not really investor friendly and they do not refinance home loans (exprct in rare cases such as land contracts or lease to purchase loans). Also if you don't live in the property they can't help as NACA requires their ownerd to live in the property