All Forum Posts by: Abraham Saldana

When utilizing a VA loan, you can purchase MFH's but you need to live in one of them. You both can only occupy one VA loan home for a minimum set time (usually a year) before you can move on. You cannot both occupy and use a VA loan from each of you to buy a single MFH. Hope this helps!

Is it alright that I got super upset with your PM as I read this and wanted to drop kick her through that broken door?

In all seriousness, I am sorry this happened to you.  Happened to me once and ever since then I have been managing my properties on my own.  Honestly, its not that big of a hassle especially if you only have a few properties.   

Either way I hope you get whats owed and you get resolution to this mess! Best of luck!

hey Jeremy,

How fortuitous.  We just finished up a flip and are looking for a flip.  Feel free to pm me!

Anthony,

For a VA loan, you do not have to put any money down. However, there is a funding fee that gets incorporated into your loan (1.5% if it is your first time using the VA loan). I would recommend that you figure out what your upper limit is on how much you can spend (it should be your BAH or just slightly higher). In addition to that, the only out of pocket costs should be closing costs with the bank, which can be mitigated by the seller on your contract when you purchase a home/multifamily home.

If you have any other questions, let me know.  I am currently in the military as well and have bought quite a few homes using both conventional and VA loans.  Ill be glad to make sure you're on the right track.

@Audrey Truesdale Durham is hot right now.  Ive been trying to buy a few MFH properties in the area and have been constantly getting out bid.  Its been easier to purchase SFH's (I got one a few months ago and closing on one next month), but Durham is definitely hit/miss.  There are parts of the city that are great investment areas, and some that will take a few more years to see the rejuvenation come to their area.  Let me know if you need help focusing on areas!  Ill be glad to let you know.

Chad,

Welcome! One of the best things about your situation right now is that you should have your VA entitlement, and that is a huge bonus for you. You are basically able to purchase a house with no money down. If you are going that route, I have recommended to my friends that they do the following:

1.  Utilize your VA  loan and purchase a multi-family property (preferably a tri/quad plex, anything more than that and you cannot use your VA loan) Live in the property for  at least 1 year (to satisfy VA requirements), while the other tenets pay your mortgage, but SAVE that money you would be paying towards the mortgage.  

2. After you have enough cash, utilize an FHA loan to purchase another MFH. By this time, you can also probably move out of the first MFH and refinance utilizing a conventional loan. This free's up your VA entitlement and you can go purchase another MFH with zero down.

3.  Rinse/repeat and if you are diligent, you can have over a dozen units within the first couple years of you starting out.  

Hope this helps!

Go Army beat Navy! :)

Hi Dennis,

Are you an investor / willing to work JV deals? I am currently in the Raleigh/Durham/Chapel Hill area.

Biggest thing about commercial loans are that they

1. Generally have higher interest rates (between 4.5-5%)
2. Require a minimum 80% LTV

Besides that, there really isnt too much of a difference.  They do check against debt to income just like a typical home mortgage, so unless you are levered above 45-50% you'll be fine.  If you have any other questions let me know!

Hi Lane,

Who are you working with in NC so far?  Are you also doing buy and hold?  I went and looked at your website and I look forward to hearing your first podcast.  Best of luck with everything!

HI Wendell,

I was wondering what your typical rates and lengths were for hard money lending. I am exploring different options for buy and hold SFH's and MFH's and I would like to see if this was a possible avenue to continue purchasing. Thanks and have a great one.