All Forum Posts by: Elena C.

@Lior Rozhansky thanks for the input! Yes, I am planning to manage the property myself, but thought it will be good to account 7% as PM just in case other things go wrong. For example, I am putting 6% into maintenance reserve, but if things go very south, then we will really have 13% as a backup. 

I will start looking more into the properties after the new year.

@Avery Heilbron, thanks for pointing that out! Then $600k for a two family makes less sense with that rental income. The Net Cash Flow will be around -$770! I am going to look at 3-4 units then.

@Jonathan Bombaci Next year, the VA loan will have no limit, so we can technically see how much higher we can get pre-approved for. Will definitely consider a 3 or 4 family, but currently dont find any. I am using Redfin because I can select several cities at once.

Let me know if you find anything worth looking at. Thanks!

Thanks for your input, @Jonathan Bombaci. What is the avg closing cost? From our pre-approvals, it seems like it could be around 10-12k. I used 8k to see how much we could get in CoC ROI if we were to close that low.

I cant find any 3-4 units in the areas I am currently looking at: Waltham, Watertown, Melrose, Medford, Revere, and Everett. We will consider going a bit north only if the commute makes sense. Currently, Lowell, Lawrence, and Haverhill is way too far for me (2-3hr public transportation to Cambridge!). We have two cars, but I dont feel safe driving during the winter season. 

Happy Holidays, BP!

I have been doing some analysis in the past few days to get ready to purchase our first multifamily. We plan to live in one unit and rent out the other one. Move out a few years after (3-5 years) to jump on our second one and get the ball rolling. Currently, we are considering getting a VA jumbo loan (& deal with all the pain) with 0% down.

I did some analysis for the Everett and Revere area. If we could purchase a turnkey duplex at less than $600,000, then we could barely cash flow when we move out. That is, no major repair/renovation. Even so, I feel like I am just forcing the math to work. Basically, if we do not buy, we will be throwing away $2300 every month into rent. We thought it is just better to buy something and put that rent to work on building equity on a home.

We are open to other areas within 1.5hr away from Cambridge and Hanscom AFB via public transportation. Any suggestions will be appreciated.

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Here is my assumptions:

1. VA loan for $600,000 at 0% down (already including the VA funding fee in the $600,000), the mortgage (P+I) will be around $2,756.24/month.

2. Closing fee: $8,000 out of pocket

3. Rent based on Redfin search:

Unit 1 (2BD/1BD) = $2,200/month

Unit 2 (3BD/1BD) = $2,300/month

5% Vacancy = $4,275.00/month as rental income
4. Operating expenses: $1,462.4

5. Net Cash flow = $56.34 (Rental Income - Mortgage - Operating Expenses)

Welcome @Joia B. I am on the same boat. Exploring using VA loan to purchase a multi in MA under my husband's name. Currently taking the lead and also hoping he will get more involved later. It's going to be exciting!

I read that for owner-occupied multi-family, we could get conventional loans with a down payment as low as 5% without paying the PMI. Any recommendations on where to find those lenders and get some quotes?

I already have a few VA loan pre-approvals. The funding fee is supposed to increase even more next year. I want to compare the VA loan vs a Conventional loan and see which one is better for us.

Yes, that is exactly what another loan officer said. Thanks for pointing it out too!

Yes, I noticed that. Random recording fees etc. Currently trying to learn more about the different insurances and fees. What are must and what are optional. I do see some savings on buying points over the 30 year fixed loan, but need to learn more about the caveats to understand the pros and cons (refinancing, etc).

Thanks!