First Property Blues

[Tia Wilson]

Hey BP! I appreciate you taking the time to read my post and any advice you can offer.

I'm having a little bit of a struggle trying to find my first home. I'm using a no money down VA loan to find my primary residence. I plan to live in the home for at least 2-5yrs. My goal is to find a home that cash flows, purchase under market value, do forced appreciation, cash out refi then use that money to buy investment properties. Easy right?! Uggghhh! 3 months later and nothing so far.

The issue I'm running into is here in Houston it's 90% SFHs and I'm being out bid every single time. The last 2 homes I was able to get under contract had issues that would not meet VA appraisal standards. The other issue is many of the homes I'm finding will not cash flow unless I put money down. I don't have that plus closing cost and renovation funds.

Any other VA loan users ever run into this problem? What was your remedy/strategy? Maybe I'm just not being patient enough but it's hard out here for 1st timers in this very competitive market. Especially in Houston. Thanks yall!

[Forrest Williams]

I second the live-in flip @Forrest Faulconer (great name btw). I'm not sure this is an option for you Tia, but it may help to expand your search radius. When I moved to Illinois, I couldn't find a deal for me in Chicago, so I moved to a suburb instead. It was a little longer commute, but the money I made on the house was worth it. It's okay if the house doesn't cash flow immediately. If you can get a couple roommates, or even one, you can lower your monthly payment enough while you live there. Once you've got it in ship-shape, you can raise the rent and be good to go.