All Forum Posts by: Dominic Franco

@Mike Johns interesting. You'd think they wouldn't want to leave that much of their benefits tied up into a property they no longer own. I know the VA loan limit is $484,350 so to my understanding if the veterans loan that you assumed was in the original amount of $100,000 then that veteran would have $384,350 left of benefits to fund another VA home loan.

@Timothy VanWingerden thank you for the advice. I sent out an email today letting the tenants know the new rental lease terms to see if they are even going to stay with the increased rent rates. However, I did include in the email, after they pick one of the lease term pricing options (1 year/6 month/M2M) that per company policy we will require each occupant 18 years and old to complete an application, background check, and credit report. We are currently using Cozy to manage our property since we just have the one property with 2 tenants in it. What property management software do you use? 

-Dom

Sorry for the late reply guys, the deal didn't go through (mostly because Penny Mac's lack of communication and sense of urgency) but I appreciate all the answers.

@Andrew Postell Kevin is correct, you do not have to be a veteran, however, if you are not, then the VA benefit would be tied up in that property so it is unlikely that the veteran would want to do that. In this case, I am a veteran so the seller was ok with it because I would be able essentially assume his VA benefits and transfer mine to him.

@Kevin Hunter thank you for the information, always trust but verify right? As far as VA occupancy goes, I have been told you must intend to occupy the residence within 60 days of closing and reside for a year, life-changing circumstances notwithstanding. Essentially, if you buy the property with intentions of occupying it but life changes (PCS orders, new job, baby on the way) then you are able to vacate the property and put a renter in.

@Mike Johns Wow, 3 VA loan assumptions? That is impressive. It was very enticing because of the low-interest-rate I'd assume along with being further into the amortization schedule (less interest more principal). For your loan assumption did the veteran leave their VA benefits with the property or did you transfer your VA benefits to the seller? I figured most veterans wouldn't want to leave that tied up into the property. I know I wouldn't.

Good evening BP family!

I recently just closed on my first deal, a duplex with tenants occupied on both sides. I am preparing a new lease agreement as one is up and at the end of the month and the other is on M2M. Looking at the rent roll they have never had any issues paying on time and on the surface seem like responsible tenants (one is a bit cleaner than the other but no major issues). I plan on increasing the rent with the new lease agreement so I was thinking I would first see if they plan on staying at the new increased rental rate. My question is, should I screen these inherited tenants to make sure they are even the kind of tenants I want staying another year? Or if they are willing to stay under the new lease terms just forego a screening? 

-Dom

Ok, so I've searched and come up dry on an answer. I am looking at assuming a VA loan from the seller and wondering if this means I still fall under the rule of having to live in it as my primary residence?

 Thank you!

 Thank you for the invite Chris! Unfortunately, we won't be out in the Charlotte area until fall time (Aug-Sept). However, as soon we are in the area we will certainly catch the next meet up.

Haha no worries! Honestly, I am open to investing anywhere that the numbers make sense, even if that's out of state. However, we are moving there this fall so I would like to get to know the market around the Charlotte area. I am really interested in affordable housing areas outside of major cities. I attended the annual state of the market meet up here in Fayetteville and there is a lack of supply of affordable housing ($150k-$250K). Anticipating some form of a drop in the real estate market, whether sooner or later, I really think these affordable housing areas will be in high demand.

 Thanks for the info! Depending on some pending job offers I am leaning towards the Fort Mill area. My wife has some friends living there and I have enjoyed our visits to that area. Ultimately, like David Greene preaching, I am going to invest where it makes sense. Even if that means out of state.

 Thank you Don I will check it out!