All Forum Posts by: Eric Blair

@Twannisha Jackson thanks! Guess I could also do some cold calling. I haven't tried anything like that yet

I'll try to keep this brief. The TLDR: I have a rental property with anywhere from $60-$80k equity but have no idea how to find a 2nd property that cash flows in todays market

So I purchased a house and house hacked. Moved out 2 years later and it's been rented since (4 years). Cash flow has been great. Basically double the mortgage. I don't spend any of the money I get, I just save it

House details:

- purcharsed in 2019 and refied in 2020 to 2.75%

-Refied at $107k and worth between $160k- $180k based on similar homes recently sold in the neighborhood 

-Currently have a great paying W2 job in a lcol area (Alabama). I can save $2k a month if I would quit skydiving so much

Question is, how can I leverage my rental into finding a cash flowing property? Everything I see is super expensive that I just can't see how the numbers work. BRRR seems to be dead to those of us with less than $100k saved (which is me). I can't get a HELOC on my rental because the local banks won't do that for investment properties. So what are some clever ideas to finding my 2nd rental? It's been 4 years. I'm ready for another one

I have a family now and don't really want to move them around while I house hack. My primary residence tho would make a great rental. It also has $60k equity on a 2.5% mortgage. I'd rather not sell either property due to such low rates but maybe it's time? I don't know. I'm here just seeking guidance from you professionals 

I am a veteran and both mortgages are under the VA loan so I'm tapped on my entitlement. I have excellent credit and make roughly $120k a year, if the extra info helps. So if you were me, what would you do?

Thanks so much for any reply! 

@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