Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
House Hacking
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 8 months ago on . Most recent reply

User Stats

13
Posts
8
Votes
Manuel Llanas
8
Votes |
13
Posts

Considering getting a 2nd property (multiplex in Oregon, where my brother lives at)

Manuel Llanas
Posted

Hello all, new to BP and have been hooked for over a week. So I’m considering getting a 2nd property.

I make a little over 50k per year, with a credit score of over 700 and I have a VA disability benefit. My brother makes over 70k per year, but his credit score is around 600ish. I have my first property (townhouse: 2 bed 1.5 bath, HOA) that I got back in March of 2020, just before covid hit. $175,000, 3.25% APR (thanks to VA loan), currently have a bit over $50k in equity if I pull it out. I have about $6k in my savings and my brother has a little over $2k. I can save up to $1.3k per month. Unsure of my brother but I'm guessing he can save more.

I currently am in debt by almost $55k, almost $27k in student loan, $11k in credit card, and $18k in a trailer that I had to buy for an emergency (dad’s place he was renting caught fire).

My local loan officer said I would be able to get a loan up to $450k, if I rent my current home out and the property, I’m going for is a duplex+. This was almost a year ago and my credit score is a bit higher than before. I will eventually rent out my current home. But it is one of many options I’m trying to come up with.

I am currently interested in getting a multiplex at/around Sweet Home, OR (Portland, OR is an option as well). This specific location is where my brother lives at and he will be the handyman/property manager. I will be stuck in California for a good chunk of this. If I can go with this plan.

Is it a bad idea to try to get a multiplex property, if I'm going to be the one to finance it? If I go the equity route, which might have a higher APR. I would have to pay that off as my brother manages and makes the payments for the property. Is this something worth trying? If both my brother and I can use up to 3.3k per month for the mortgage, as we work on upgrading it. Should we aim for properties that might be higher priced? I am currently using my VA benefits for my current property, a war buddy of mine, says I can transfer this to another property. But my loan officer says otherwise. Would this be an option if I can transfer my VA benefits (mortgage currently is at 158k/175k, he mentioned something about having anything left over from the VA loan)?

Any advise is appreciative, thanks for taking your time to reading and answering this.

Most Popular Reply

User Stats

639
Posts
517
Votes
AJ Wong
  • Real Estate Broker
  • Oregon & California Coasts
517
Votes |
639
Posts
AJ Wong
  • Real Estate Broker
  • Oregon & California Coasts
Replied

Congrats sounds like you're well on your way. I'd suggest possibly extending the house hack to another duplex or quad. 1-4 units are residential so will be easier to finance. 

There are some multi family listings in the general area from $100-200k per door..we've helped several investors hack OR properties in Salem, Eugene, Albany and beyond. Connect if I can support your search in anyway. Check in with @Joseph Chiofalo for deeper VA insight and how to structure the financing. We've been including a lot of seller concessions to reduce the cash to close.

Good luck! 

  • AJ Wong
  • 541-800-0455
business profile image
Fathom Realty
0.0 star
4 Reviews

Loading replies...