The answer is: probably. First you will need some cash. You will need a downpayment on the purchase, but it can be as little as 3.5% down. So on a $200,000 home you would need about $7000 for the downpayment. There will be some closing costs too. It might be possible to get a seller to pay your closing costs but ideally you would have at least $10,000 saved up. Some or all of that could be a gift from a relative but there are rules for how you get that money.
Once you have your nest egg ready you will need to talk to a mortgage broker or bank to see how much of a loan you qualify for. After prying into your financial life the lender will tell you what the total amount you can borrow is and also what the estimated monthly payment will be on that loan. Then you can start looking for houses.
Even more good news is that it is possible to buy what we in Chicago call a Mixed Use property with a low downpayment FHA loan. Mixed use is anything that is part commercial and part residential. In Chicagoland that is your standard storefront with one or two apartments above. The residential portion needs to be 51% or greater of the total sq footage. Usually that can be accomplished with just the stairwell going up counting as residential space, thought a good realtor (like myself) can give you better guidance on what properties would qualify for the FHA loan. There are all sorts of other options for someone with a lower budget. A house with a big garage, basement, or attic might work. You might be able to buy a 2 or 3 unit apartment building (also with a low downpayment) where you can live in one unit rent one unit and maybe the basement or the 3rd unit is your studio space, bringing in income from the rental space to help cover costs.
For more ideas on how to buy a property as a starving artist please reach out to Melissa Stanley at ArtHouseChicago.com
2-3 flats are a great idea! Especially for people with some “do it yourself” skills!