Owner Occupied Multi-Family

[Amber McGill]

Hi everyone, 

I'm new to BiggerPockets, never done a deal; and looking to get started. I would like to find a multi-family property to buy with either a FHA Loan or a NACA Loan. I've already started the NACA process, but still in the very early stages....With the FHA Loan is it possible to have renovation costs rolled into the mortgage amount and still have a 3-3.5% down payment?? I would like to find a distressed property that I can reno to make it what I want but I have very little capital up front ($4-6k depending on if I want to take a withdraw from my 401k). I confident that I will have enough to close on a NACA mortgage, concerned about whether or not I'll be able to close on a FHA Loan with a down payment & closing costs; but certain that I won't have the capital to close on the property and fund the rehab with the loan. Any ideas, information, or places to do research will be greatly appreciated!

[Carley M.]

@Amber McGill - if you keep all your documents electronically so you can email them at a moments notice (sometimes several times - always use the Subject line to tell yourself what the attachment is so you can find it easier and resend it!!) and don't have any late payments within the last 12 months, you should be able to move through fairly quickly.  I had a couple unique circumstances that took extra time, but the program works well as long as you stay on top of your file. YOU are the only loan processor and you're the only one who really cares whether or not your file moves from Point A to Point B. Don't be afraid to be an advocate for yourself!

If you have the lifestyle to do so, I would recommend a quad. This is the best financial decision I've ever made. It not only pays for itself but generates true excess income - above maintenance/repairs, above management fees, above water bills and taxes/insurance.  A triple will generally pay for itself but not generate true excess income. A double generally pays the mortgage/taxes/insurance but not repairs, etc.  Of course, the lower the price, the higher the rent, the better your margins in any scenario. I tried to pick one that was realistic and could help me with future retirement/further investements.