Want to buy a Multifamil but not sure what direction to go into

[Ryan Brown]

Good morning all and thank you in advance.

I'm interested in buying a multifamily home but not sure how to do so. Multifamily properties are extremely expensive in this climate and I would love if anyone with experience can steer me into the right direction. I did a lot of research and heard of the NACA program. Though I hear it's beneficial, I also heard they can be a pain in the "you know what". Any advice would be appreciative.

Thank you and have an awesome weekend!

[Abel Curiel]

Hello @Ryan Brown!

Two of the main drawbacks of the NACA program are 1. your property options are restricted to specific locations and 2. there are price limits which could make you less competitive when placing bids on properties.

If you are able to get past those 2 hurdles, the next challenge is the lengthier loan-approval process. Sellers, especially those with a need to sell/move quickly, may be reluctant to accent an offer with this type of loan vs. a conventional, FHA or even VA loan.

My recommendation would be to speak with an investor-friendly lender who can pre-approve you based on areas and properties of interest. They'd be able to take 75% of the projected rental income on a multi-family to apply it to your income thus helping you qualify for a higher amount in some cases.

All the best to you on your search!

Abel