All Forum Posts by: Derek Hedgespeth

I have two VA loans now, I just had to prove justification that we were moving. I believe you multi family is fine as long as you occupy a unit. I really don't think the VA loans are quite as good as I thought years ago.

Hey bud,

You're keeping your current home as a rental? Either way you can get a second VA loan because you are moving. There are several duplexes and multi families on the market now that you could look in to. I have a sister that has fixed up several cheap houses north of the beach that are cash flowing really well. Maybe you could get a fixer upper cheap and flip when you PCS again. Good luck!

Hey Guys!

I am under contract for my first duplex. Long story short, it took a tremendous amount of savings to be able to get the property. I still have decent reserves and it will cashflow for me. The original plan was to try and acquire another property in a year or so once I built up some more cash. I met the owner yesterday and we hit it off pretty well. He has another duplex on the market that cash flows even better and I believe he'd owner finance with around 25-30 percent down. Do hard money lenders just loan just for a short term? Is it possible just to borrow the down payment and then use cashflow to pay that back? Part of me wishes he'd never brought it up because I think I might stretch myself thin. Any advice from a seasoned investor is certainly welcome. Thanks for your time. 

https://www.military.com/benefits/military-legal-matters/scra/scra-lease-termination-provisions.html

It's just a short read, but touches on the Soldiers and Sailors Relief Act. I had a landlord try to keep my security deposit because he was angry I received orders. I am a landlord now and I can see the frustration on both sides of the fence. 

@Matt Leber, thank you for the advice. What are your thoughts on inherited tenants in regards to rental amounts? My realtor thinks that the current rents are probably 100 dollars too low per door. Do I approach it when the lease is up? There are only a couple of multi family units in my area that aren’t apartment complexes so I’m hoping to get good quality tenants. In regards to property management, do they require a certain monetary amount in an account that they can use to pay for repairs etc? I’m typically just one county over but I’ve been activated with the military so I am leaning towards property management. Thanks again!

Thank you!

I wish I had your mentality in my 20's! Get after it brother.. Don't settle for the VA loan, it may not always be your best bet. My last one had over 5K in funding fees. Maybe a house hack with 20% down, that way you have great equity and maybe some good appreciation in 4 years. Also, look into some Roth IRA's or other mutual funds. The TSP can be limiting.

Hey Guys,

I am in the process of acquiring a duplex in north Florida. I am not a pro subscriber yet but I was able to use the calculator for free. I have a couple of questions. First, the purchase price is 150k with around 38k down. It has a well with city sewer and the renters are responsible for electricity. The garbage pickup is figured in with yearly taxes. I forecast that payment, taxes, insurance will amount to around 800 a month while collecting 1400 in rent. Is it safe to assume a lower capital expenditure because it has a new well, tile floors throughout, and a metal roof? I put 5% each for repairs and capital expenditures and according to the calculator, it should flow just over 500 a month. 

Secondly, do you guys put your cash flow in a separate account for all of your properties? Is it easier for tax purposes, and then if a repair needs to be made pull it out of that account? Thank you for taking the time to read my post!

Hi Alejandro,

I am a rookie also, working on my second deal. Are you able to buy it as an investment property without putting 25% down? Do you plan on renting the single-family attached to the garage? Is there a market for that? Best of luck!

Thank you for responding, I appreciate it!