All Forum Posts by: Bennett Smoot

To add some information to the post, I will be moving to the Killeen area. Looking specifically at Harker Heights and not trying to wander much further south towards Austin.

Bigger Pockets team,

I am moving to TX in the not-so-distant future and am looking to buy a duplex (owner occupy initially and then rent out both units in the future). There are two new constructions on the market (should be complete just before I move) that I am considering. I wanted to ask for advice/thoughts/comments on buying new constructions. They are obviously more expensive than other houses in the local market but you are getting a less worn product. Does buying a new construction immediately put you in the hole as it will decrease in value once lived in? Or does the value stay pretty level and appreciate like any other property? My fear is there is an initial drop, similar to driving a car off the lot, before appreciation kicks in. Happy to provide more information if necessary to get feedback.

Thanks!

Bigger Pockets team,

I am moving to TX in the not-so-distant future and am looking to buy a duplex (owner occupy initially and then rent out both units in the future). There are two new constructions on the market (should be complete just before I move) that I am considering. I wanted to ask for advice/thoughts/comments on buying new constructions. They are obviously more expensive than other houses in the local market but you are getting a less worn product. Does buying a new construction immediately put you in the hole as it will decrease in value once lived in? Or does the value stay pretty level and appreciate like any other property? My fear is there is an initial drop, similar to driving a car off the lot, before appreciation kicks in. Happy to provide more information if necessary to get feedback.

Thanks!

Hey Bigger Pockets,

Looking at refinancing my VA Loan with a VA IRRRL. Any recommendations for lenders? Got a good rate from LoanDepot but reviews have me concerned. Also looking at Veterans United but when the second thing that pops up with Google is "Veterans United scam" it also raises red flags. I want to take advantage of low rates but do it with the right company. Any thoughts/suggestions/recommendations?

Thanks!

I greatly appreciate all the feedback. Here are some of the numbers. The original loan was for $105,000 (nothing down) at 4.125% (15 yr loan). The monthly payment with tax and insurance is $1,015. If I refinance to a 30 year, the rate drops to 3.75% with the monthly payments hovering around $750. Rent wise, in our are for similar houses the average rate is roughly $850. There are relatively few houses for rent and ours has some unique perks so I do not think getting $900 is unreasonable.

With the 30 yr refinance, I would go from still having to pay $200 ish a month to cover the mortgage to bringing in $150 in cash flow.

Some more info: I am less than a year into the 15 year loan and not worried about using up the VA loan.

I know people often refinance from a 30 year to a 15 if they can get a competitive rate that does not dramatically increase the monthly payment. I am looking at doing the opposite. I bought a property (my first) with a 15 year VA loan. I bought the property before I started seriously educating myself and diving into real estate (a mistake I know). The plan is to keep the house as a rental property. I am moving sooner than expected and do not have a ton of equity in the property. That said, the monthly rent I expect to get will not quite cover the monthly mortgage payments. I am considering refinancing from the 15 year loan to a 30 year loan using a VA Streamline or VA IRRRL. I can lower both my interest rate and my monthly payments in order to achieve positive monthly cash flow. I know I will end up paying more in the long run on interest, but I will also be getting a better return on the investment as opposed to having to cover the difference between the mortgage and the monthly rent brought in. Just looking for other people's thoughts/comments/insights on this use of refinancing.

I know people often refinance from a 30 year to a 15 if they can get a competitive rate that does not dramatically increase the monthly payment. I am looking at doing the opposite. I bought a property (my first) with a 15 year VA loan. I bought the property before I started seriously educating myself and diving into real estate (a mistake I know). The plan is to keep the house as a rental property. I am moving sooner than expected and do not have a ton of equity in the property. That said, the monthly rent I expect to get will not quite cover the monthly mortgage payments. I am considering refinancing from the 15 year loan to a 30 year loan using a VA Streamline or VA IRRRL. I can lower both my interest rate and my monthly payments in order to achieve positive monthly cash flow. I know I will end up paying more in the long run on interest, but I will also be getting a better return on the investment as opposed to having to cover the difference between the mortgage and the monthly rent brought in. Just looking for other people's thoughts/comments/insights on this use of refinancing.