All Forum Posts by: Eric Jubeck

Yes, please share anything you have in Navarre...thanks!

Hey Stephanie, that sounds like a great plan, and I can absolutely relate! I'm originally from the Philly suburbs as well and I remember those days of dreaming on moving to FL and investing in Real Estate! Been here awhile now, but as someone that's been through that process and cultural change, let me know if you ever have any questions or need help! Welcome to BP

 Hey Todd, welcome to BP, and welcome to Navarre! We love it here as well...the serene shores is a good description of it for sure. Let me know if we can help in any way, best of luck!

Hey Marcus, there's some good advice here so far, and as others have said you will definitely end up in the Gulf Breeze/Navarre area if you're both planning to be able to commute, which would split the difference.

As for VA Assumable, that is a great option, but it may be very hard pressed to find a home to assume without money down. You only have $15k saved up and there's a very high chance that any home bought in 2021, or early 2022, when rates were still that low, would not have appreciated more than $15k in our area. Not saying it is impossible, just not the norm. With an assumable VA Loan you are taking the loan exactly as it sits, and covering the difference in cash, or through a second position loan option in order to purchase (which includes equity spread + closing costs)... so that may limit your options.

In my opinion, you may have better luck finding a home right now that the Seller is willing to pay concessions so that they could buy down the rate for you. More homes are sitting on the market and many are willing to pay concessions right now. Or better yet, use concessions to cover up to 4% of your closing costs with the VA Loan and just buy something while keeping the $15k in your pocket for value add to the property. Point being there are multiple strategies, so you just need to talk through them a bit and I'd be happy to assist any way I can.

The other consideration would be how rates are anticipated to drop still moving forward. Obviously no one has a crystal ball and knows for sure, but since you would be here for a few years, keep in mind the refi process with a VA Loan which is an IRRL, is cheap and simple...so even if you buy now with no money down, use your $15k savings for some value add to the property, and then rates continue to decline, you'll be able to easily refi with a VA IRRL and drop your payment anyways before you go transition to LTR in the next few years.

Lots to think about, plenty of ways to go about it, not right or wrong, just depends on your needs so reach out if you'd like any guidance...

So you're going under contract with a property on the market, that you're planning to assign elsewhere? Or you're going to be the end buyer?

The listing agent is most likely having you sign the buyer broker so they can represent you on a transactional basis for filing out the contract, and for them to be paid both sides of the transaction from their listing agreement in place. If you're not licensed yourself, this is pretty standard, and if you're planning to assign the deal you would be charging the end buyer your assignment fee separate from the agents commission anyways, correct?

Well you already have the answers based on what your Broker allows, either do Non-Rep to Buyer, or just transition to Transaction. But regardless of that, why would your Broker not pay you the full commission for the transaction, that is the real issue? When you signed the listing agreement, you put the Total Compensation the Seller is paying your Brokerage...then you listed a secondary amount for Cooperating Compensation IF there is a Buyer's Agent(Brokerage) involved. Since there is no other Agent, your Brokerage gets the entire Total Compensation from the Seller regardless, so with your split, they should be paying you off the full amount just like a double sided deal no matter what. That's the real question to ask...

Hey, if you could share the link to the listing we could probably help out better. More than likely you're looking at a property that was from foreclosure, most likely a HUD home. They often list with that stipulation that yes they are trying to find an end buyer that will owner-occupy the home first, making the investors wait a little longer before getting in on the action. Nothing strange with the tax record line you copied, that's normal for listings...and yes they state cash or rehab loan, something like a FHA 203(k) loan that again an owner occupant would take out to fix up and move into themselves. From the info you shared so far, it's all pretty straightforward.

Hey Zach, so that's the answer there, you'll just be buying the property as your primary residence, a form of house hacking where you'll end up moving out of it and transitioning into a rental after your year of homestead. So really what you need to figure out is with the $60k available to put down, how much to put down to make sure the property cash flows once turned a rental? The more you put down, the lower your rate and payment...The less you put down, the more money you have left over for value add updates to the property...but then you have to weigh out everything else too...will a lower rate now make sense if rates keep dropping and you refi in next few years anyways? will more cash on hand be necessary for your reserves or potential rehab? will more cash on hand allow you to invest in other places? will more cash on hand allow you to compound it a bit so that when you go for the second property after this one, you have more purchasing power with an even higher down payment? Those are questions you'll have to answer for yourself on best use for the $60k and at what number the future property in question will cash flow!

Hey Zach, the main question is what will your employment situation be with the relocation to NH? If you're staying with the same employer, or have a job lined up in similar work, then you could just purchase with a standard owner-occupied loan product, take your pick! Most require move in within 60-90 days after closing, so it gives you time to purchase and relocate after closing knowing you have your home lined up. Then you'll be able to execute your plan to rent out after the year...

If the employment situation is not set in stone or concrete with the upcoming relocation planned, then I suggest buying it as a second home/vacation property now if you can. Of course you'll still have to qualify with your DTI ratios on paper having both the rental and the new second home payment together, but that would be more ideal than buying as an investment property considering it will afford lower down payment, interest rate and insurance if you're just buying as a second home/vacation home vs an investment purchase. Then your original plan still works, you'll be moving into it sooner than later anyways with the relocation, and waiting at least a year before transitioning to a rental.

So what's the plan with your employment during the relocation process?

Welcome to BP! Jax is a great town and well spread out so plenty of areas to choose from. Lookup the local REIA group and connect with the locals there for sure. We did a flip in Jax Beach, so if you need a great investor friendly agent dm me and I'll send you our contact there. Best of luck with the new venture!