All Forum Posts by: David James

Also, the VA has finally jumped on board with the rehab wagon. You can now get a VA Rehab loan and have the rehab costs rolled into your loan.

Its a new program that VA just came out with. You can use the VA and have the rehab costs rolled into the loan. Much like a 203k loan.

It came on the market on the 12th of this month. But there has been no offers yet.

I did a walkthrough yesterday of a 1948 SFH. 3bdr 1bath 1508sq ft. Hardwood floors throughout, just needs to be restained. Cosmetic repairs of walls. Kitchen needs to be renovated. The roof has a tarp over it and there is water damage to a couple ceiling areas. The estimate for the roof replacement was around 10k. Downside is that there are a few unknowns. For instance, the house has been winterized so the water was off. Another reason the water is off is because the tub/shower in the only bathroom. So therefore, I cant tell if the sewer, water, well, and plumbing are all working. The heat was also turned off, it is oil heat. The electrical panel looked old so it may need to be replaced. So with all of that said, would it be worth it to get a home inspection done? Will they be able to check the water, well, and the heat? I would have a sewer scope done before I buy. Being an older home im pretty sure there will be something wrong with the plumbing, septic, well....etc. I am using a VA Rehab loan and I believe there is a cap for the amount of rehab. Also, being a VA loan, it has to be my primary residence for a year. After that time I would rent it out. This house does have good potential. I would put in another bathroom, it is in the path of progression, it is zoned for commercial/residential. The comps are about 50-100k profit that I could make. I am trying to not get caught up in the emotion because I see the potential of the property. I just dont have a warm and fuzzy about buying something and not knowing if big ticket items actually work.

Great information from everyone!!! Thank you all so much. I will definitely do some research into each strategy.

So I had an idea that of the money you get from a rental property (the expenses such as repairs, vacancy, taxes and CG) since you dont want to spend this and save for big ticket items in the future, where does people put that money? Would make a lot of sense to put it into something that you could gain compound interest and make that money grow even larger! Where do the savvy investors put that portion of the money?

I am doing a walkthrough of this property tomorrow. I will be using the VA Rehab loan. Im sitting here running the numbers both for rental property and the BRRRR method. The rental portion looks pretty good but when I plug the numbers in for the BRRRR method, it shows me losing money and cash on cash flow is negative. I must be doing something wrong??? But what I dont understand is when you refinance at the appraised value then of course that will increase your mortgage payment. So then my expenses are more than the rent. If someone has the time to look over my numbers that has experience at doing the BRRRR method, I would greatly appreciate some help!

Has anyone used a FHA and 203K combined? Pros and Cons?

Using the LAPS system, lets say you put in 12 offers. Hypothetically, lets say its one of those months and you get 4 offers accepted. So now are you legally obligated to purchase all 4?

@Scott Pearson Good job on the due diligence!!! To reply to the comments on what I said about "treat it like a business" I wasnt saying not to be compassionate or understanding BUT when it comes to something criminal ask yourself "would I live next to this guy" especially for the people that have young children. If the answer is no...why do you think anyone else would want to live there? In essence, if your in the rental business and you rely on renting your property, I know of at least 2 golden rules. 1. Be fair but firm. 2. Dont rent to friends or family.