NACA loan for multifamily investment d/t limited liquid funds

[Erica Viverette]

Hello fellow or beginning REIs, 

I need advice as I've been thinking of obtaining a multi-family property through NACA due to me having limited liquid funds and fair credit. I'm in the process of credit repair as I've hired a company in conjunction with me clearing things up myself however, I still have a long way to go. I feel as if I'm wasting time with all my ideas and learning (although beneficial) yet letting my current situation keep me stagnant. I'm aware that among this loan I will have to owner occupy but I was just thinking of taking the worst apartment and doing repairs myself gradually. Although my money is mostly tied up I don't need this unit for immediate gains. Aside from monthly repair expense reserves and mortgage, I'd like to remainder of funds to until I snowball the total amount and life of the loan adding my disposable income to payments when they become available. The benefit of this to me is an expiration of my procrastination, beginning my REI career now as opposed to waiting, learning about REI with minimal risk, being able to include repair costs to the loan, no closing costs, fair yet improving credit. All advice is welcome!

[Carley M.]

I created a NACA Experience handout (things I wish I knew before I started NACA) for a testimonial I gave. The short link to that is https://tinyurl.com/ybq4beto

I also created a purchase affordability calculator so you can find out if the house you’re interested in is affordable based on NACA monthly payment amounts. They don’t tell you that you can afford a house up to $100,000. They tell you that you can afford $600 a month for mortgage, taxes and insurance. This spreadsheet translates that to housing price. The link for that spreadsheet is https://tinyurl.com/y984lsa7 

I closed on a 4-Unit with NACA (with 30k in repairs processed through HAND) in November 2016. I helped my best friend go through the process and he closed in November 2017 on a double. I have other friends going through the program now too. It’s worth the headache.

If you have repairs to make, plan on 90 days to close (based on a a standard 30-day close expectation) because of additions time to get bids, etc. Making your seller aware will help manage their expectations.

Good luck!