Flipper/Rehabber · Virginia Beach, VA · Member since 2018 · 95 posts · 65 votes
So I have run out of houses to look at on the MLS/Trulia/Zillow etc. So I feel kind of stuck. I have listened to a lot of the podcasts and read a lot of books so I know about the other sources of getting leads but I have a VA loan to use to buy my first property so there are some pretty specific restrictions with that .I'm using the VA loan because I have no money for a downpayment so FHA and conventional loans aren't an option. I can't do a direct mail campaign because I have no cash and I can't do the auction thing because of the same problem, so I'm just kind of wondering what some of my other options are. I have checked craigslist and facebook marketplace. I don't have a network yet but I am working on building that so I am very open to any suggestions, please.
You stated you've ran out of houses, have you looked at multifamily? Because you could house hack a multifamily property and probably get the most bang for your buck utilizing a VA loan. And if you aren't looking at multifamily how are you using a VA loan to secure a investment property, I thought VA loans had to be used on a primary residence?
As far as your other options; creative financing. You could partner with someone, use Hard Money or Private Money, or owner financing among other things. By utilizing a few of these you could open yourself up to auctions, direct mail, etc.
You stated you've ran out of houses, have you looked at multifamily? Because you could house hack a multifamily property and probably get the most bang for your buck utilizing a VA loan. And if you aren't looking at multifamily how are you using a VA loan to secure a investment property, I thought VA loans had to be used on a primary residence?
As far as your other options; creative financing. You could partner with someone, use Hard Money or Private Money, or owner financing among other things. By utilizing a few of these you could open yourself up to auctions, direct mail, etc.
@Derek BaileyI know I might not have been very clear but some details I was only pre-approved at 180k avg cost of a home in Va beach 200+ Me and my wife separated so I already have a VA loan on the other house where she will be staying which is 216k. VA loans can only be used for primary residence but I'm looking for something outdated that is livable that I will do a live in flip and then BRRRR out of so I will have money to actually make a down payment on the next property. As stated above I don't have any network in the real estate industry at all I'm going to a meetup tonight to hopefully change that but for now, I don't have anyone I can use to finance a deal or partner with since I will be living there for a 6mo to a year. I'm not arguing with you or shutting down any of your suggestions they are great and I really appreciate them. I am trying to build my network I am actively looking for private money/ partner but its kind of hard with no track record I was just wondering if there was anywhere else to look for leads without any cash or private or hard money
With the details you now mentioned in the second post yes, I can certainly see some difficulty trying to accomplish what you're doing. Did you have any success at the local meet up?
Buy a duplex, triplex or fourplex with your VA loan. Move into one unit then immediately refinance with a VA IRRRL refinance loan. The only requirement is to certify that you lived in the house. You can then buy another property and rent your unit. This relives you from the 1 year requirement to live in the house.
@Skyler Mckinney house hack dude. Buy a fourplex, live in one unit and rent the rest. The other three units you can use as income to qualify at 75% of gross rents, and you are on-site, so you can manager them easily. Then, you can slowly improve the property or put in sweat equity, and when you have sufficient equity refinance conventional and free up your VA eligibility and do it again. If you don’t have service connected disability and have a claim - make it ASAP - waives thousands of dollars in fees.
Start today! Connect with me if you need help...
Daniel Lehman
USMC Veteran
As other posters have said.... house hack a duplex..... I’m prior Navy and I find it impossible to believe there are no duplexes at the 180k mark in the Greater Virginia Beach Area. You need to look around 30-60 minutes away from there.
Also try a US Department of Veterans Affairs Loan. Very very much like a VA Loan but it's deaugned for a property that needs "some" fixing up.
Also..... are you the veteran or is your wife? I’m the divorce, if she got the house then it is what it is but you should definitely ask a lawyer and or a mortgage broker about this because under those circumstances you should not be hamstrung
on the amount of your VA loan because your wife is now living in the va loan property. This will sound harsh but you are the veteran, not her. You should be the one maximizing all of that va loan. You went through boot camp, deployed, and served your country for that va loan. Not her.
@Skyler Mckinney are you still on the mortgage for the other house? Make her refinance to take you off ASAP if you are still on it to help improve your DTI. Definitely use another VA loan to get a house to house hack (even if it’s a SFR and you have to just rent out rooms). I know there’s townhouses in VB that are in the price range.
@Skyler Mckinney - I agree with @Brandon Wade that you will have more options in Norfolk. You won't likely be able to find a hard money lender willing to give you a loan to house hack. I don't know any who will give you money for an owner occupant. You do still have some room left on your VA loan. Using your remaining amount will minimize the amount you have to come up with if you us an FHA on whatever remaining amount you have to spend. I also suggest you focus on a 2-4 unit.
So I have run out of houses to look at on the MLS/Trulia/Zillow etc. So I feel kind of stuck. I have listened to a lot of the podcasts and read a lot of books so I know about the other sources of getting leads but I have a VA loan to use to buy my first property so there are some pretty specific restrictions with that .I'm using the VA loan because I have no money for a downpayment so FHA and conventional loans aren't an option. I can't do a direct mail campaign because I have no cash and I can't do the auction thing because of the same problem, so I'm just kind of wondering what some of my other options are. I have checked craigslist and facebook marketplace. I don't have a network yet but I am working on building that so I am very open to any suggestions, please.
If you're looking to live in it, there's also the FHA Plus option (VHDA loan) that allows you to buy and finance the down payment into a separate mortgage. There is PMI included in the payment for that type of loan though, unlike the VA loan. So it would cost more per month. The best advice I could give is to just meet and talk to people. I suggest reading "How to Win Friends and Influence People," by Dale Carnegie. That book has helped me immensely with talking to people.
@Brian Garlington@Amy H. I am the veteran But I am paying the mortgage as my form of child support so If I refinance it into a conventional and put it into her name the payment will go up as will my child support. It doesn't sound harsh, I totally agree with you but like I said its working out because it's less then the court ordered child support. I'm not turning any one's suggestions down at all but I don't feel comfortable with house hacking because my children will be staying with me three days a week. There is not a lot of multi-family in VA beach its mostly separated townhomes, or at least I don't know how to find them every time I check craigslist or FB marketplace or LoopNet there are the same two and they want 400+ for them. @Brandon Wade@Patti Robertson I would really prefer to stay in Virginia Beach. I understand at a certain point I will have to decide whats more important as of now I know the market pretty well here and would like to stay here.@Joshua S. I have read that book it is one of my favorites! I have started to slowly build a network and meet more people through looking at houses and going to meetups. I did not know that loan option existed so I will do some more research on it Thank you all so much for your suggestions @Daniel Lehman Thank you for your service and advice and I am 70% disabled. @Clifford Paul I didn't know the IRRL worked like that thank you guys I have been learning so much through this website and the great people on here!~