All Forum Posts by: Nicholas Jackson

I had my first workshop meeting early February so roughly 8 months.

Hey! Sounds like you got a good set of goals laid out and on a good path. I have very similar goals as you in wanting to purchase and build up a small multifamily portfolio and eventually get into apartment buildings as well. I have gone through the NACA program and will be closing on my first househack next week which is a duplex in Saint Louis. Feel free to reach out and connect and ask and questions you need!

Awesome to see you have started the process. I am currently in the process of searching for a home with the NACA loan. It took me about 6 months to reach that point, but I needed to wait for tax information from this year to come out which was a roadblock. Feel free to reach out with any questions!

It is a concern with the low down payment programs like NACA that you would have to live in the property for the entirety of the loan but there are many ways around this issue that people should be addressing as well. Nothing is concrete and these programs understand that life changes could occur in which you would have to move or change things in your life. Once you are in a loan you are always capable of selling the property or refinancing into a different loan product. Performing this refinance especially after renovations could be a usefully tool to provide you with capital that you can use in a future deal through this BRRR method. This could also allow you to get into the property with low to no money down and continue to save for any future payments or for the downpayment on the refi. It's important to do your research and I would even suggest attending some of the workshops like NACA's to find out if you could still utilize their product while you can and then adjust in the future with other avenues that are available. NACA is only available to lower income producing families so you would not get the chance to use a product like this once you start building significant wealth, while FHA loans are always around and available.

 Thank you for this advice it is really helpful. What were your considerations in terms of safety when looking at these neighborhoods and what were some issues you might have encountered during your time living there? 

 I appreciate this advice. It is nice to weigh all my options, see what is possible, and push towards my long term goals as even though this seems like a big deal its only the first step for my investing journey. 

 With the loan product I am approved by the amount I am approved for depends on the rent income of the varying property types i.e. I get more money for a 4 family compared to a 2 family and my approval for a single family home would be really low. Based off this I would more likely use multi family for now for this first property. 

Hello everyone,

I was wondering if anyone had any advice on house hacking and finding the best property that would fit my criteria. I am based in St. Louis and recently have been approved for a loan. I am looking to house hack a multifamily unit as the value of my loan relies on income that the property brings in. In my area I am finding that many multi family units are not in the most desirable places or are well above my price range. My question is should I be patient and wait for more opportunities to hit the MLS, look for off market properties in my desired areas and see if anyone would be willing to sell, or try to negotiate deals to a price that is more affordable to me from properties that are listed on the MLS but out of my price range. Thanks for any and all advice!

I believe this answer would come down to your goals and what you want to achieve along with running numbers to see what is most reasonable in alignment to your goals. I would suggest refinancing as I am currently in the NACA program and have had this as my goal down the line for when I would have to move but my goal is to generate cashflow through holding as many cash flowing properties as long as possible in good areas in my city as I believe the value of properties and rent will increase over time in my city. For your situation it might be more beneficial to sell and possibly do a 1039 into a larger multi family that you could house hack or something else that would fit your strategy. Determine what would give you the most amount of funds and push you toward your next goal as quickly as possible and decide from there.

If you need it fast sell. If you want the slow cashflow refinance and determine if the cashflow would be net positive income.

So I just was approved through NACA as well and the approval price also can vary based off what property you buy and what other price points are included such as taxes and insurance. If you are looking to house hack you can use up to 75% of rental income towards your monthly payments. I would make sure you are considering all numbers and guarantee you are in your price range you desire. If you managed to make it to the approval step you have done alot of work to get there so I would not back out right away. Also consider using the money you have saved as a "down payment" or to buy down points to see if this would increase your purchase price. I believe once you consider all possible avenues then you can decide from there.