All Forum Posts by: Eric Blair

@Samuel Coronado

Did you try a local credit union? I got a $50k loan with zero down by using a local credit union

I may have stumbled upon a great deal but as I am not a professional or seasoned expert like most of you, I thought I would drop the numbers and plans here and see if I’m outside of my depth here

Near Clanton, Alabama

I found a 4 acre lot for $100k. It has 4 power, water and septic hook ups already on the property. Albeit they were originally meant for mobile homes so very close together. I’ve already got a land loan because I’ve been looking for my own land to build my forever home but this property made me see dollar signs

Land loan is 0% down at 7.5% for 20 years. Payments are $850

I have access to VA loan with no funding fees. My thought process was to use a construction loan to build a quadplex of about 4000sqft with each unit being 1000sqft. VA loan will require me to occupy one unit. I feel that in this area I could easily get $1000k a month per unit. That's pretty cheap for the school zone. School zone is one of the top in this area. It would probably cost me between $100 and $115 per sqft to build. I've already got contractors I can use which is where I get my build estimate. Land is unrestricted and not land locked

I've already got one rental and my current house will be a powerful rental. So my plan is to purchase the property, build a quadplex and once completed roll the land and rental into a consolidated VA loan at 0% down, no funding fee and closing costs rolled into the loan. Legally I'll occupy 1 unit and rent out the other 3. In my area there are almost zero quadplexes. This would be unique and in a great school zone

Maybe I’m not seeing something right so I welcome any insight. Thanks!

@Ruby Ruiz I

Don’t feel bad about falling for sob stories, even though I don’t think that’s what they were doing. I use to be a cop and all cops fall for sob stories when we are rookies. Mine was a veteran giving me this crazy sad sob story. I let him go with medics to the hospital only to find out later that he had 22 felony warrants. He was a vet but he was a lying pos. Never fell for another one

@Andy Garcia

No I’m a contractor

@Kerry Baird

This is how I got my first property and the property I’m in now. I just got stuck in the 2nd property once the rates went up. The market out paced my salary even when it doubled! But I think I could save enough to buy a distress property. It’s hard for me to move because I have a kid in a good school district so that might now longer be an option for me

@Nathan Gesner

Man this was a great response! I obviously looked at helocs but they are about 8% right now. And even with a heloc it doesn’t give me much for acquiring property and flipping those into rentals. I was very fortunate to get my houses when I did. Right place right time. I can’t chalk that up to skill…it was luck. So I’m very grateful.

Currently I have enough emergency savings I could go about 18 months unemployed so now my savings is just a regular savings because my emergency savings is solid. In fact I could probably dedicate $1500 monthly to my savings. I think your idea of a very large down payment is a good idea given the current economy. My only gripe is that once I spend a down payment it will take a very long time to recuperate that down payment. But I guess I can only do what the market allows

@Zack Karp

Great idea! I could swing a 5-10% down payment from my savings and then use a heloc provided I can find a deal

@Wale Lawal

Thanks for the suggestions! I’ve thought about helocs but the only issue is finding a home that I could purchase with the heloc money. Hines are pretty expensive. Honestly I’m not in the best area for that. Alabama has changed over the last few years. But I will definitely look into your suggestions. I’m sure there is a deal near me. Birmingham isn’t far away. Might poke around there

Here’s my situation.

Montgomery Alabama
Purchased my first property for $107k with the intention to rent it out eventually. Used my VA loan and zero % down to make it happen. This was also the first house I've ever bought. I just finished paying off a bankruptcy from divorce and was feeling pretty good to get a loan for 4.25% in 2019. Lived in it for 2 years and did minor things to spruce it up. Carpet, flooring, paint, fixtures, landscaping. I mean the house was basically in great condition. Even had a brand new roof and young HVAC. Then Covid hit and rates dropped. Couldn't resist that juicy refinance to a 2.75% rate. Made the property ripe for profit. So I refinanced under the VA streamline refinance loan (IRRRL). Refinance was $110k, no down payments and rolled in closing cost into new loan. Won't go into specifics but the refinance allows VA loan users to purchase a 2nd property.

In 2021 rates were still low so I bought a 2nd property to eventually rent out. Property $178k at 2.5% bought using my VA loan with zero% down. I actually offered $174k and rolled my closing cost into the loan. Can you believe that? I offered below asking price in 2021 and my offer was accepted! However, due to crazy high rates and housing inflation, I still live in this house. Rates went up before I was in a place finacially to aquire another property. I also career changed and took a pay cut. I now make double what I use to so I can afford to put money into investing monthly. It’ll make a killer rental one day

First house currently rents for $1275. Mortgage, including insurance, escrow etc. is $589. Currently I do not use any of the leftover money as I have been saving it to create a buffer for CAPEX and maintenance. So far have roughly $10k saved up in the last 2.5 years sitting in a HYSA. Balance on the house is now $101k with comps in the neighborhood between $140-$155k. Everything has gone up in the last few years around this home.

2nd house is $900 (property taxes increase yearly) now. Current rental comps are $1500-$1600 in my neighborhood. Remaining balance is $168k. Selling comps in the neighborhood are $215-$235k

There are very few properties that are cheap these days. Even the rehab ones. I don’t have money saved up except an emergency savings fund. Currently I can save $1500 monthly after bills. Multi door properties are basically non existent near me. So given my situation, what are some clever ideas on how to leverage my current situation into buying another property?

Thanks everyone