All Forum Posts by: Collin Blackburn

I'm from Richmond, spent a few years in Sand Diego, and have been in Virginia Beach since 2018. Lots of opportunity in VB in Norfolk. Options for long term/short term rentals, flips, etc. and the prices are affordable. There are always buyers/sellers/renters because of the military turnover too. 

@Dan H. Agreed! I wasn't trying to bash to SD. I was just highlighting that you can still get significant appreciation in cash-flowing markets. I feel a lot more secure holding properties with strong cashflow (I think I have a lower risk tolerance). 

For this situation specifically I see more opportunity cost in holding the property than in selling it (even though there is a chance for more appreciation in SD). 

The $150k could be used to leverage around $450-500k in multifamily. They could also re-use their VA loan to buy an additional property to house-hack. They would own a higher $ amount of property, so even if their new market appreciated less, they could still see a greater benefit. They would also have the security and monthly income of the additional cashflow. **Sounds hypothetical, but this is exactly what I did. The three properties I bought in VB ended up appreciating more (when I add them together) than my old place in Chula Vista**

Just my 2 cents! I love this conversation. 

@John Devereaux I was in a similar situation in 2018 when I got PCS'd from San Diego to Norfolk. I decided to sell my SD property and buy a few multifamily properties in Norfolk and I think I made the right call.

Look at your return on equity. You have $150k in the property and MIGHT cashflow if you decide to rent it. If you sell and buy a property in a market with higher cashflow, you could make pretty significant income. People talk about how much appreciation there is in SD compared to other markets, but I've seen ~40% appreciation since 2018 in the multifamily properties I purchased. If you sell and buy cash-flowing multifamily, you can have the security of cashflow but still benefit from appreciation and rent increases. 

Free up your VA loan. I'm assuming you used your VA to buy this place. If you free up your VA loan, you could use it to buy another multifamily house-hack wherever you get stationed (this is what I did too).

I'm a loan officer in Virginia Beach/Norfolk now and I'm licensed in Florida too. Shoot me a PM and we can set up a call sometime if you want! 

Hey Sam! I'm a Loan Officer based in VA and I can do Homestyle reno and FHA 203k loans. I'd be happy to hop on a call sometime. Sending you a PM.

@Preston J flores 

Everything @Ray Rivera said is spot on. You said you were looking at buying a quadplex with an FHA loan so I wanted to add a few things a lot of people don't know about.

For 3 and 4 unit properties, FHA requires the property passes the "self sufficiency test." The NOI from the property has to cover the total monthly mortgage. I calculate this by taking 75% of the monthly rent from the units the borrower doesn't live in and comparing it to the monthly PITI. The FHA self-sufficiency test is very difficult to pass in some markets.

The 203k loan comes at a higher interest rate (around 1% higher) than the 203b loan. After the loan seasons (6 months) you can refinance. 

FHA is great for multifamily house hacks where the buyer wants to minimize the down payment or needs to count income from the other units to bring down their DTI ratio. For first time home buyers without experience in property management, I can't count rental income from other units if the buyer is using a Conventional loan, but I can count it with FHA. Also- the down payment for FHA stays at 3.5% for multifamily, but it goes up to 15% (2 units) and 20% (3-4 units) when using Conventional for a primary residence.

Congrats! Looking forward to working together

@Sean Rooks I can do VA reno loans right now!

@Murray Nicol Congrats on finding Bigger Pockets so early on in your career. It took me a few years to find it. You're definitely on the right path! Finding affordable multifamily is tough in VA beach and Norfolk right now. I know a lot of guys who have seen success buying SFHs and renting bed rooms or an in-law suite.

Hey neighbor- Glad to see you on here! I used my VA to buy the multifamily next door and do the same thing. I think we were both piling up the street with trash while we were knocking out the rehabs at the same time.

Hey Morgan- I'm a loan officer in Virginia Beach at CMS Mortgage and we can definitely help you out! Sending you a message. NMLS 2223487

@Kevin C. We bought back in early 2017