Realtor Advice

[Jenny Duclair]

I asked my realtor for comps for a multiunit I plan to owner occupy, buying with VA loan, and he said I dont need to worry about the value of the 4plex when the rents are more than enough to pay the mortgage. That doesnt feel right. He works hand in hand with a lender who rightfully only cares about getting paid. But would the two of them push to get me into a property that is ultimately a bad deal? I may be paranoid but this is my first property purchase ever.

[Todd Trader]

As a 20 year Realtor that advise makes me uncomfortable as well. I'll give the agent the benefit of doubt of trying to sound professional when he doesn't understand the marketplace to begin with. In other words I don't assume they're trying to play you, he's only probably thinking about the potential commission check...probably hungry.

Where is the property? Maybe the area doesn't offer good or recent comps. If getting a VA loan, there will be an appraisal on the property none the less. If this property interest you further write an offer to get in the door. Put a 10 day Due Diligence Clause to perform inspections, review rent receipts, costs of ownership I.E. Insurance, utilities, taxes.

You should, with these facts know if the numbers crunch for you. Never make the mistake of believing you'll make more because you'll be a better manager. Use only the data available. If you do better great, but it should never be a part of the equation.

If the numbers don't fit submit a revision of what you are willing to pay. Do this before your DD period ends.