All Forum Posts by: Adam L.

@Chris Mooney, the house hacking idea is fantastic and I recommend that to anyone; especially with the VA loan!!! That being said, thank you for your service and hopefully you find some great help here on! My partners and I are always looking to help military and their families so please let me know what we can do to help you out. REI is the best route to take in my opinion and I love it! Best of luck!!!

Hello, Kevin. For ease of typing I am going to say "you" when I may mean you or your partner.

So, you must intend to live in the property for at least one year to use the VA loan. So if you would like to invest in a quadplex and live in one of them while renting out the other three you can do that. This is something my company and I always recommend! House hacking a quadplex with zero down on a VA loan is an amazing opportunity! That of course means you cannot invest in different location with your VA loan since you would not be able to live in it and the VA loan is only intended for the primary residence.

Now, when it is time for a military move then you can do it again at the new location with the remaining amount of the VA benefit or refinance the VA loan into a conventional loan and use the full benefit again. There are some amazing opportunities with the VA loan that are fantastic investment choices. Please let me or my partners know if we can help in any way!

@David Smith, you most certainly can use you VA loan again and you can have two of them at the same time. You have to be over about 150k on the second mortgage and anything over the limit you have to pay 25% of the overage down. So if you’re 100k over the allowed amount you would have to put 25k down Good to go! And yes, you can refinance into a conventional (so long as you have to 80%) and then have the full VA benefit.

Originally posted by @Thomas S.:

Any property valued at 330K with rent at a measly $1600 will be so deep into negative cash flow long term that you will lose more money that you can ever imagine.

Sell asap before the markets turn and you lose all your equity. This property is not a investment.

 This is very certainly the case to buy as a rental; however, when transitioning from a primary residence to a rental it can sometimes change.

That being said, I completely agree that you need to sell this property. Never hold on to a property that is taking money from you. Sell the property, get your full VA benefit back, and go buy a quadplex with your VA loan. :)

I love seeing my fellow AF and military brethren on here and making it happen! Keep rocking it! REI is a great way (the best in my opinion) to get that passive income we all desire. I love the idea of house hacking the quadplex and if I knew "then" what I know now I would have done a lot more of that for years and years now. Anyways, please let me know if I can help at all. I work with a great group of military/Vets and we are always trying to connect with more. That goes for @Chase Stocki, @Eric H. and any other military/vets folks of course!!! Let @Markian Sich, @Eric Upchurch, or me know!

Great job on buying property while in the military. I always preach that people should be doing that and I only wish I knew then what I know now... man oh man! 

Anyways, there are a couple different ways to look at it and I think it only changes a bit either way. No matter what you do you’ll be a distance investor so it comes down to what market will give you the best return long term. Take a look around, call some realtors, talk to property managers, etc. These people will help you understand what is going on in the areas in which you are interested. That’s a big deal!!! Also, if you don’t have boots on the ground somewhere that can be a big game changer as well. Depends on what you’re comfortable with and how good you’re Pm is. 

All in all you are good no matter what you do as long as you do your research and get the right PM. 

Also, I would read this blog as well. It’s ahows some other great options! https://www.biggerpockets.com/renewsblog/how-to-use-the-va-loan-to-build-capital-for-real-estate-investing/

On a side note, I would also recommend getting a du/tri/quad plex if your family life can handle that. You get up to three other incomes paying your mortgage while you're living for free and when you move out you have four incomes. House hacking is great for military as the VA loan still covers it!

Congrats on the awesome achievements thus far! Impressive!!! So it seems you should actually be teaching others how to get to that $10,000 mark. You are well on your way and seem to be doing just fine. I personally focus on multifamily investing so that is usually where I direct people, but I also think people should find the niche they like and go with it and become experts. That being said, keep rocking it! But be prepared to change up a bit from the Air B&B for when the market corrects again as vacations may dwindle a bit. Always run your numbers, always be smart, and plan accordingly! Keep it up!!!

So very true! I just put a list together from ListSource and will be sending out 70 letters to one city trying to FIND the right deal. None of these apartments are listed... I am just looking to find the right property for the right price. If you are doing the same thing everyone else does you will get the same results everyone else gets.

Thank you for the reply @Immanuel Sibero. This is certainly a tool to help decide if I want to buy a property or at what price to buy it. 

So as for the increases in rent and such, those are sections that can be changed manually based on what you think the prices will/can be. And I have the vacancy, capex, and financial terms (basic terms such as rate and term length) on there. 

And I certainly did screw the NOI up. Thank you! I need to recalculate that to make sure that is proper. I will fix some of these issues and try to upload again.

Thank you again for the input and please let me know if you can think of a better way for me to do some quick analysis on properties without forgetting anything.

I just added a debt coverage ratio as well.