Inland Empire CA · Member since 2019 · 45 posts · 18 votes
My first Rental property. But now I want to sell it, So I can move and free up my VA Loan. Property is a Duplex with newly constructed ADU. Los Angeles Ca. If I do sell. I want a good, knowledgeable Realtor in that area. Referral? Recommendations? Opinion?
What is your reluctance to renting out the two units and getting a new loan when you move? You've met the residency requirement.
You would need to check your VA Certificate of Eligibility for the area you are moving. The entitlement code is two digits which will correspond to a maximum loan amount for the area. Subtract this amount from the amount you currently owe and this is the amount of financing you still qualify for through VA. Of course you can also refinance the California home into a conventional investment property loan. Prior to making a decision it is probbaly wroth paying $500 for an appraisal to fully understand what the property is worth with the new ADU.
Los Angeles real estate has made homeowners and investors rich beyond their wildest dreams. I gave up my slice of it 25 years ago. Don't make the same mistake I did if you can avoid doing so.
What is your reluctance to renting out the two units and getting a new loan when you move? You've met the residency requirement.
You would need to check your VA Certificate of Eligibility for the area you are moving. The entitlement code is two digits which will correspond to a maximum loan amount for the area. Subtract this amount from the amount you currently owe and this is the amount of financing you still qualify for through VA. Of course you can also refinance the California home into a conventional investment property loan. Prior to making a decision it is probbaly wroth paying $500 for an appraisal to fully understand what the property is worth with the new ADU.
Los Angeles real estate has made homeowners and investors rich beyond their wildest dreams. I gave up my slice of it 25 years ago. Don't make the same mistake I did if you can avoid doing so.
What is your reluctance to renting out the two units and getting a new loan when you move? You've met the residency requirement.
You would need to check your VA Certificate of Eligibility for the area you are moving. The entitlement code is two digits which will correspond to a maximum loan amount for the area. Subtract this amount from the amount you currently owe and this is the amount of financing you still qualify for through VA. Of course you can also refinance the California home into a conventional investment property loan. Prior to making a decision it is probbaly wroth paying $500 for an appraisal to fully understand what the property is worth with the new ADU.
Los Angeles real estate has made homeowners and investors rich beyond their wildest dreams. I gave up my slice of it 25 years ago. Don't make the same mistake I did if you can avoid doing so.
@Jonathan Cisneros I would agree with @Melanie P. We own property in SoCal and we did cash out refi's on each of them and scaled our rental portfolio. We actually section 8 most of our properties and it's been fantastic. I am not going to sugarcoat it, but it is a lot of work on the front end to get section 8 to approve your property with the inspection and vetting of your tenants, but in my experience. If you take your time and do it right it can be a great option.
Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
2y
Undoubtedly Section 8 tenants are ideal for the remote owner. No need for a property manager, often Section 8s max rates are above market so you can get the units to above-market rent on that basis. The inspection is actually a blessing if you're far from the property - saves you having to do one. Some of the inspectors can be nitpicky so where they are that way we set up a couple easy fails so they don't have to look hard to find something to fail us on that could involve more work.
Undoubtedly Section 8 tenants are ideal for the remote owner. No need for a property manager, often Section 8s max rates are above market so you can get the units to above-market rent on that basis. The inspection is actually a blessing if you're far from the property - saves you having to do one. Some of the inspectors can be nitpicky so where they are that way we set up a couple easy fails so they don't have to look hard to find something to fail us on that could involve more work.
I actually have a Veteran HudVash/Section 8 tenant. Being a Veteran myself, I gave him a chance. In the end, he's that tenant that has not paid me rent in 5 months. However, I know this doesn't mean all section 8 tenants should be judged because of one bad apple. Depending on how this week interview goes with this appointment I have this Friday, will determine if I keep this rental and cash flow. Or sell this rental so I can free up my VA Loan and move.
Undoubtedly Section 8 tenants are ideal for the remote owner. No need for a property manager, often Section 8s max rates are above market so you can get the units to above-market rent on that basis. The inspection is actually a blessing if you're far from the property - saves you having to do one. Some of the inspectors can be nitpicky so where they are that way we set up a couple easy fails so they don't have to look hard to find something to fail us on that could involve more work.
Undoubtedly Section 8 tenants are ideal for the remote owner. No need for a property manager, often Section 8s max rates are above market so you can get the units to above-market rent on that basis. The inspection is actually a blessing if you're far from the property - saves you having to do one. Some of the inspectors can be nitpicky so where they are that way we set up a couple easy fails so they don't have to look hard to find something to fail us on that could involve more work.
I actually have a Veteran HudVash/Section 8 tenant. Being a Veteran myself, I gave him a chance. In the end, he's that tenant that has not paid me rent in 5 months. However, I know this doesn't mean all section 8 tenants should be judged because of one bad apple. Depending on how this week interview goes with this appointment I have this Friday, will determine if I keep this rental and cash flow. Or sell this rental so I can free up my VA Loan and move.
Unfortunately, that is a common complaint about section 8 tenants. Have you reported that to their case carrier?
My first Rental property. But now I want to sell it, So I can move and free up my VA Loan. Property is a Duplex with newly constructed ADU. Los Angeles Ca. If I do sell. I want a good, knowledgeable Realtor in that area. Referral? Recommendations? Opinion?
I lived in Los Angeles for 10 years and did brokerage there. I know some good realtors that can help!
Kenneth I’m so sorry you’re going through this. I’m a real estate agent in Los Angeles and I can offer solutions to help put this behind you. If you’re still considering selling this property let’s connect.