All Forum Posts by: Adam Joseph Reed

@Justin Fox feel free to give me a call and I can share with you what I know. 

Zach thanks for the post and the add. I've called up several in the past that would do primary residences, but not rentals, and others would do rental but not primaries, what I need is one that is ok with the hybrid. I briefly talked with PENFED but I needed to have my tax returns completed to help get approved in order to show a lower DTI. Will contact that referral you sent! Thanks very much for that!

 @Josh Edelman That's awesome! In short I waited to file my tax returns. I made more money last year than the year before but I can't prove it until the returns are filed. My expectations are to file the returns, apply for a HELOC from a lender that will loan on a primary residence that receives rental income, and then use the remaining portion of my VA loan at some point later in the future. I have considered buying raw land with the HELOC or going in with a partner with either private money or equity stake to build new construction duplexes. But it all hinges on the HELOC. What lender did you use? Did your primary residence receive rental income while it was your primary? That has been the sticking point when finding lenders for me.

Hi Sarah!

I'm out of Asheville too! I am a Navy Reserve Officer and real estate agent full time with Keller Williams Professionals. I too have a VA Loan on the duplex I live in, rent my half out on drill weekends and other times on Airbnb and I own a short term rental on the Nantahala River. I have remaining eligibility on my VA loan as well and I am always looking to find a way to utilize this great benefit we have through the VA!

I have a few questions for you and your husband: How long have you owned your house? Is it possible to get a HELOC open on it? If there is a significant amount available to you for a HELOC, have you considered buying vacant land? If so, perhaps going the route of a construction to perm loan may work for you. Depending on your build cost you could make the interest only payments while house is built then do a cash out refinance into your remaining portion of your VA loan. With the cash out refinance you can pay off your HELOC and buy another piece of land, and do the same thing.

Also, some lenders will look into your TSP accounts and use that as a reserve in order to qualify you. I have a bunch more questions for you but for now let me know if I can help you in any way!

What's up BiggerPockets! First post here. I have a question for you folks.

In 2020 I bought a duplex for $300,000 with my VA loan at 100% LTV. Last year I refinanced it with the IRRRL at 2.25%. In the last few months there have been comparable sales that have closed in my county at $549,000. Assuming my home would also appraise for $549K, that would leave about $255K in equity.

I am looking to take out a HELOC so that I can create some options to buy more real estate with. I have many ideas and several paths I could go, but the first step is to open up a HELOC.

I spoke with a local bank, First Citizens Bank to open up a HELOC. The draw to them was the 89% LTV. When I spoke with them, they said they could not open up the HELOC because it is not solely a primary residence. They wouldn't loan because I receive long term and short term rental income from the property.

The second bank I spoke to was United Federal Credit Union. I had heard they did HELOCs on rental property at 80% LTV so I started the conversation with them. They also would not approve the HELOC because even though my long term tenant covers all but $25 and I received STR income when I am away from my primary home, they wouldn't open the HELOC because I live there.

These responses seemed like a Catch 22 and I am not sure how to proceed.

Which leads to my questions:

1. What Lenders might approve a HELOC on a primary residence receiving rental income?

2. If I can't find one that will do it, should I shift my focus to just buy another primary residence with the remaining VA eligibility then apply for the HELOC again?

3. Or should I refinance the duplex at a higher interest rate and pull out my equity and buy other real estate with a 20% down payment on more than one property? I think this would free up my VA loan to make another purchase, as well as a higher return on equity.

4. Or a combination of #2 and #3?

5. Just hang tight and continue to pay the mortgage?

Thank you for reading these semi complex questions. I am open to any and all feedback as I get clear on a game plan moving forward. 

Onward and Upward.