All Forum Posts by: Christopher Aguilera

Greetings Everyone, 

I've been contemplating selling or doing a cash-out refi on my primary residence (Townhouse) here in Southern California and trying to capitalize on the equity my home has generated over the past couple of years. 

I wanted to get some opinions from seasoned investors and see what would you do in my situation.  My Real Estate goal is to buy and hold 10 doors and pay them off as soon as possible. 

With that in mind here is my situation:

I recently was contemplating selling my primary residence (Townhouse) due to my growing family and rolling my gains into an SFR which would easily cover my 20% down payment and still have an extra $140K for investment purposes. but I dismissed the selling idea mainly because the areas where we could afford to live were areas we don't want to live in. Mostly due to commuting distances, schools districts not being up to par, and our mortgage would easily double.

At the same time that I was thinking of selling my house, I was able to lock my interest rate for the cash-out refi because the interest rates are going up in the coming months or years; and maybe then a cash-out refi may not be an option. Anyway, I would get about $140K out for investments and future buying power, with only a slight bump in mortgage (+$675), still keep a 61%LTV and if I ever decide to rent this place I would conservative cash flow around $300. Which I know is the way to go but I'm experiencing a mental block and pulling the trigger. my inside voice is telling me that I'm afraid to make a big move like this, of making a mistake and mismanaging the money, and not meeting or exceeding my real estate goals. My inside voice is saying to not do anything and keep my low mortgage payment, pay off the mortgage sooner and get higher cash flow when renting it out in the next 5 years.

Anyway, I'm thinking out loud and hope someone can relate or has been through this situation and can chime in with some investor experience and how to overcome these mental blocks!?

 Below is what my refinance would look like if I do the refi.

Hey Jonathan, 

if you are a pro member you should see them here:

https://www.biggerpockets.com/...

Hey @Breelon Bryant, I'm in the same situation as you now. Did you ever find a solution to this problem?

Hey BP, 

Would you purchase this deal? with little to no money in the deal using a VA loan.

https://www.biggerpockets.com/...

Let me know what you think...

Thanks!

Good morning BP, 

I need advice and help analyzing this deal. 

So my strategy is house hacking a 4-plex using my VA loan at 2.25% interest rate. I'm looking at a 4-plex where the location is B Neighborhood and the building is probably C- needs work.

Purchase price 1,450,000

Down payment $0

Interest rate 2.25%

Monthly Expenses 702 (water, garbage, gardener, Maintenance)

Laundry Income $50 a month

Taxes are $1417 a month calculated for tax assessor website

Current rents: Unit A (3/1.5) $2100 Unit B (2/1.5) $1800 Unit C (2/2) $1654 Unit D (2/2) $1690 Total = $7244

Market Rents: Unit A (3/1.5) $2400 Unit B (2/1.5) $2100 Unit C (2/2) $2150 Unit D (2/2) $2150 Total = $8800

The lender is considering taking 75% of the rental income which is 5,590 and I will go in to the cheapest unit C and pay the rest of the mortgage & Interest plus all expenses. 

Let me know what you think??? and Just know that i'm going to be house hacking for 12 months and move to raise all the rent to market level on the unit I will live in.

Thank you for your help!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hi BP, 

Can you guys help me analyse this property and maybe give me a few pointers on how to make this work. 

The strategy that I want to implement is house hack using my VA Home Loan and I want to do a multi-unit (4-plex) if possible in OC, California. I was able to get the current rent roll and expenses from agent and and found out rents are below market. Average rents in the area range from 2650 - 2900 based on rento-meter and craigslist. The report you are looking at its actual 

Please provide some insight on how I can make this work by house hacking??? I've also talked to some lenders and it seems like most are not doing VA for multi units any insights on the loan aspect. Should i go FHA? or 5% conventional? 

I want to make sure i'm heading in the right direction of buy and hold. 

Thank you for all your input and help!

I'm currently looking to house hack a 4 plex and want to use my VA loan to have no down payment and live in it for almost no money down. I been analyzing a lot of property and recently come across one that can be a potential deal. I'm basing this of a 20% below market offer and raising the rents from day 1. From my analysis the rents are below market by almost $500 and if i raised the rent of 3 units the numbers make total sense and it will cash for at least $100 per door.

I'm thinking of going in with no inspections clause and taking a chance solely on the 20% below market offer. 

How would experienced investors approach this deal to minimize the risk and maximizing your offer being accepted?

I know there is a 99.9 chance of my offer being rejected by i want to take a chance on a property knowing that i'm getting a really great discount. 

Thanks

Thank you Zack, 
I I learned something new today. Thank you for the information.  

Where can I find out more on VA loans?

Thank you again for clearing up this questions!

-Chris

Hi BP,

I'm trying to purchase a 4plex with my VA and live in it while I fix the property and get all my processes down. My question is if I make offers that are 20% lower than asking price and my offer gets accepted, am I going to have mortgage insurance? Or it's based of the appraisal and market?

I'm trying to save that mortgage insurance payment .

Thanks

I came across this article on the Wall Street Journal and it peaked my interest.

https://www.wsj.com/articles/the-mortgage-market-never-got-fixed-after-2008-now-its-breaking-again-11588977078?mod=e2fb

Im currently going refinancing my primary residence thats serviced by a big bank. A non bank servicer offered a lower interest which is why I'm going through the refi right now.

What would happen to my new 30 year conventional loan if the non bank servicer goes bankrupt? Given the current situation of people not paying mortgages and non bank servicers no covering the payments.

Would I keep the same loan as long as I pay my monthly payments?

Anyway, I dont know much about the subject but I just want to see if anyone out there has any insight on how this works?

Thank you and have a great day!

It peak my interest, because it's going thought a non bank servicer. I was wondering what this all means. I'm not very experienced in RE but currently I own my primary residence and