All Forum Posts by: Armando Melchor

@Justin Pierce that makes sense, I am most favoring Austin, TX right now with an estimated population growth of roughly 11% by 2020 among other factors. It will take another evaluation when I statt branching out in a year or so. How are you acquiring 1.5% deals in those cities already?

@Justin Pierce as far as the greater VB/Norfolk area goes it's good, not the best, but still able to find 2% deals at times. I want to get into out of area markets in the next year to maximize my returns! If you're in a position to do out of area deals; Dallas, Denver, Portland seem to continually top the charts among a number of other locations. What area are you focused on now?

@Eric M. @Ryan Boyce @Nate McGee Great question and great advice on here. If you can access the funds, the 203k loan is great for this. I have my eye on a few properties right now that will allow for a fantastic purchase price, great ARV, and great cashflow. I should submit my offer in the next few days. The key is in the renovations and ARV. By getting a house that needs work I've found you can stay a lost closer to that golden 2% cash flow. Due to being in a semi-save-mode I am going to house-hack and roll renovation costs into my loan giving me the favorable cashflow without putting the reno money upfront. If I was using a different loan I would need to front the reno costs or deal with the overpriced MFs you have all seen in our area. Best of luck to everyone, I look forward to more interactions and potentially working with you guy's in the future.

@Johnny Quilenderino great question, how did this work out for you?

@Emerson Hyatt@Sheen Ford Hey guy's, just wanted to get linked up and see how reaching your goals is going? I am transitioning military SOF, investor and agent and have studied a great deal on the VA loan-enough to call myself an expert! I have used it twice myself, one for a SF and once for a duplex. In the next few months I will use it again for a 4-plex in Ghent. Either way, hope the investing/cash-flow is going well. Reach out if you want to connect or have any questions!

@Justin Pierce@Ayana Miller@Patti Robertson Hey everyone, I just wanted to say hello and I look forward to interacting and working with some of you as I frequent BP more often.

@Mike Cumbie thanks for the thoughts but I do not have enough leftover entitlement to get another loan because that large first purchse which is why I need to refi.

@Michael Bertsch @micha

@Michael Cohen can I get a HELOC on that investment property to make a down payment to that same investment property? that is the only home I own at this time.

@Edward Barnes I tried selling it for a month and the only full offer we had, fell through. When no more offers were coming in I thought I could refi and keep it for a few years then sell and make a profit. What I didn't know was the LTV% difference in a personal property vs. an investment property. After I got tenants I figured I could refi and use the VA to get my 4-plex but then I discovered the LTV dilemma.

@Charles Kennedy I appreciate the thoughts, today I will look into hard money lenders. All I need is money to pay down the mortgage to get it within the 80-85% LTV, once I refi I will have my VA entitlement back in full and can purchase the 4-plex with Zero down and closing costs rolled in.

@Michael Cohen thanks for the response! For the new purchase I will be good to go as I will occupy one of the units under the VA, thus qualifying it as a primary residence still. The issue is still the refi... I haven't a clue about hard money lender's, their rates, where to find good ones, etc. I'll take a look into that for sure. Thanks again!

Hello everyone,

First time posting on BP! here's my dilema: I purchased a SFH with a VA loan 3 years ago (before I started learning about this whole game). I want to refinance it to a conventional so that I can purchase a 4-plex in the Hampton Roads Area (with a VA loan AKA zero down). Currently the loan has 305k and is worth maybe 340k so LTV is aroud 91%+ with closing costs rolled in. I cannot find a single bank or credit union to go above 85% LTV on an investment property. I just got tennants in there under a 3 year lease on the 1st. To achieve the 80-85% LTV that lenders want on investment properties I need 40-50k... I have zero. The places I am looking at produce great cash flow which is why I'm determined to make it happen! The 4-plex will cost 425-470k of which I have nowhere near a 20% down payment which is why I want my VA entitlement back. Should I apply for a line of credit to get the 50k to refi at the 80-85% LTV? or try another type of loan and take a line of credit out to make the Down payment on an FHA or conventional loan while keeping my SFH as a VA loan?

FYI: VA loan is $1822 per month taxes and insurance included. Rent is 2200 over 3 years. Refi should lower payments and increase "cash flow". I understand those numbers are horrible, again, this was before I knew anything about real estate investing! However the home is brand new so I figured I can rent it for a few year with no real expenses, then sell and get rid of the horrible purchase I made and get some equity out of it.

I hope someone has gone through something similar or has sound guidance to get the refi and new purchase moving forward ASAP. 

THANK YOU IN ADVANCE.