Am I nuts? (Driving for dollars with VA loan)

[Kevin M.]

Hello BP,

I don't post often because I feel almost every question on here has been answered in some form or another somewhere else. I scanned on this one and couldn't find anything.

OK, first time home buyer (noob for short) 

My question is; Am I nuts if I 'Drive for Dollars' and want to make a purchase with the VA loan?

I am looking for a duplex as it seems that is all I can afford and possibly be in VA condition to get the loan. My philosophy behind this is: Find a duplex with a vacancy and try contacting the owner using this posts techniques https://www.biggerpockets.com/renewsblog/2013/05/0...

But in that post he has the magic words everyone wants to hear = CA$H

And well I can go FHA, FHA203K, and even conventional. I don't want to put down nothin' if I can help it.

It would just cut into my back up.

Any advice?

One last thing is if I do this is there a way to get around using a RE agent? Can't I do this all myself with Me, an Inspector, The Owner, The Lender and the Lenders Lawyer? Can someone point to some good reading material?

Thank you all.

[Leland Barrow]

Btw why mess with a duplex? I would get a fourplex. You will have to put very little money in the deal and you can be cash flow positive while living for free. You are short changing yourself two doors. If it is a seasoned rental then that may offset your DTI. Two years later you can FHA another and have 7 income doors on two loans. Find a seller that will work with you and you can have almost no money out of pocket. I purchased a property for 350k and paid 1500 out of pocket. The seller paid 14k of my closing costs and I used the VA process to have him do all kinds of repairs on his dime. Two months later the property is comping at 407k. It was the cheapest house in the neighborhood which supports 900k for a 5/4/3. It is a 4/3/1. So we are doing the adds. If you are going to use a VA loan go big and negotiate hard. The interest rate we got was 2.85. It is hard to get that amount of money cheaper than that. After the add we will sell, cash out and VA another property for either cash flow or equity. While 1038ing the profit from that into other properties. This way you are building assets like tree branches using OPM. When uncle sam is shoving "almost" free money at you, take it for as long as they are willing to do it. Especially when you have no skin in the game. Uncle Sam is always trying to get his, so turnaround is fair game lol.