All Forum Posts by: Beau B. Bray

I'm up in Hayes, VA, but I was stationed in Norfolk while in the Navy. Some areas of Norfolk are really nice, and with the world's largest naval base there you could get a lot of military tenants. I've been looking there as well.

If he's already moved out and is in hospice, he probably doesn't have much time left. I would have the family move out the rest of his belongings and get the place ready for a new tenant. Hospice isn't cheap, and if you went the legal route of suing for back rent, I doubt you'd get much, if any. On top of that, the time and money spent going the legal route could be better used getting the property ready.

Thank you everyone for the replies.  I'll keep moving forward and searching for banks that are more open to investments and my situation.

@Dennis M. I'm definitely continuing to save up money.  My plan wasn't to try to buy this property, but when I found it, it seemed too good to not try for it.  I probably broke one of my rules and started to get emotionally involved with this property, being a great first deal, etc.  

@Patti Robertson I'll message you the details, I appreciate it!

@Sam Craven Thanks so much for the recommendations.  I'm definitely hunting for a better bank.  I know that after my first deal, I'll have more capital and experience for my next one.  I wasn't even intending to look for a deal to buy when I found this one, I was just practicing analyzing properties.  This one just seemed too good to pass up.  I look forward to when I'm at an advanced point and can raise that kind of money.  

@Ron Gallagher I have definitely considered that. Or just moving myself to the new place and treating it almost like a live-in flip. It's only about 2 miles from my current residence. Plus if I lived in it, I could potentially use my VA loan benefit to get it at 0 down. Unfortunately, I know that at this point the property wouldn't pass the VA loan inspection, as one of the rooms needs the floor replaced.

@Ron Gallagher I've only been in my current place for a year and a half. I used a 0 down VA loan, so my equity is minimal.

@Harjeet Bhatti  Thank you for the information!  Those are better numbers than what I've been quoted here in my area.

@Larry Turowski  After speaking with banks around me, I've begun considering HMLs.  I just wanted to try the bank route first.  With the options I've been given from the local banks so far, is it normally difficult to refi an investment property?

I really appreciate the responses so far everyone.

-Beau

So I've been listening to podcasts, reading books, following the forums, etc for over a year now.  I'm in the process of saving money, while practicing analyzing properties, etc.

I was analyzing properties here in Virginia, and recently found what I think is a great deal. It was a 2 bed 1 bath SFH, 980 sq feet, on half an acre for $45k. During my research I found out it was a HUD foreclosure. It would rent for about $800/month. Also, all the comparable homes in the area sell for $120k+.

I started trying to get a pre approval for a loan on it, but so far the banks and credit unions I've gone to only offer a 15 year, 25% down loan for investment properties.  My preferred lender has a 100k minimum for mortgages.  

I was really trying to find a lower or no money down type loan since I don't have $11k saved yet, but it seems like it's just not available for investment properties.  According to the banks, this wouldn't qualify as a second home since it's too close to my current residence, and it wouldn't be owner occupied.  I'm in contact with another bank right now, but at this point I'm not very hopeful.  

Some may think I'm being too honest with the banks, but I've always figured that honesty is the best policy, and I wouldn't want to be accused of fraud, etc later on.  

My plan was to finance this with whatever I could qualify for, fix it up, rent it, and then continue with the BRRRR strategy to fund more properties.

My question with the BRRRR strategy is how can you refi for 30 if all that is available is 15 year loans (at least in my experience so far)? Also, once you refi for a larger amount, won't that eat up all your cash flow? I could see it making sense with a 30 year, but at 15 the monthly payments would be much higher.

Am I just missing something?

Thanks everyone,

Beau

Maybe just hold onto it until Amazon is starting to hire in the area?  Since it cash flows, it's not going to hurt you, and I would think the demand for condos, etc will go up probably increasing values in the process.  

@Carrie Smith basically house hacking is where you buy a small multifamily, live in one unit, and rent out the other 1-3 units. Allowing you to essentially live for free. I'm sure they have some great articles about it here that go into much more detail.

@Carrie Smith yep, I used the VA loan to buy my house no money down. I love the house, and so does the family, but if I did it over I would probably look for a 4 plex and try to house hack. I'm not currently investing in anything. I made some financial mistakes in the past and have a few debts to pay off. So right now I'm focused on that and building a large reserve fund. I think I'll look for a tri or 4 plex nearby in the future. I'll either use an FHA loan or just move myself there for a year and use the VA loan again.

@Carrie Smith if you have a finished basement that you could rent out, that'd be awesome! I'm envious lol. I'm in the Gloucester area and wish I would've known more about investing before I purchased my house.