St Louis City - 1st time home buyer - 4 family - need guidance

[Tara Myrick]

Hello everyone...I need advice...ok...here is my scenario

-Pre-approved for $140k (HUD 203K loan)

-1st time homebuyer

-looking at 4 families (LRA/MLS/Tax)

-looking at properties in St. Louis City (North City-$1.7B NGA project coming)

-was told by mortgage broker that i cannot receive any down payment/closing cost assistance because i am seeking a 4 family

-was told I need at least $10k down payment/fees/closing costs

-don't have $10K in cash

-want to ask a friend to loan me $10k; but don't know what I need to offer her in return for $10k loan

-what options are there to pay her back if she does loan me the $10K?

-what other other options are there for me to use OPM (no IRA/401K)?

everyone, i really want to jump out and get a property.  i know i don't know everything and I will make mistakes.  but, i cant keep sitting around be afraid to leap.  PLEASE ASSIST/GUIDE ME.  Thanks.  Tara

[Lee Carrell]

Hi Tara!

Nice to see your enthusiasm to jump in! I'm glad you are willing to take the risk and already have profit in mind. Hopefully, the NGA employees will be good tenants for you. Look before you leap though!

I know the NGA will be moving to north City, but that doesn't mean the property values will immediately skyrocket. Properties will still be based on the going price for homes sold in the recent past. North City prices are not stellar at the moment and seem to always lag behind other areas of the City no matter what.

A 4 family is a big first step for someone without any experience whatsoever. It can be done though, as I have done it myself! If you opted for less than a 4-family, the down payment/closing cost assistance would be very helpful. A 4-family will mean increased insurance, taxes, repairs, rehab, utilities, repayment, tenant headaches, etc. Your mistakes will be magnified because of the size of the building and the number of tenants!

Get all your ducks in a row and good luck to you!