All Forum Posts by: James De Leon

Hi @Elvy Harris,

Welcome to Bigger Pockets! What to do with your current property depends on what your goals are and the current value. If the goal is to utilize your VA loan to buy a multiplex in an expensive city then selling it would be ideal. If the goal is to put the equity you have somewhere out of state or build a portfolio then doing a cash out refi or utilizing a heloc would be best (Depending on home much equity you gained). Having a property with a lot of equity right now is the best way to start since you will have the capital to buy another one and make some moves. I own a 4plex through a VA loan, but also in the process of getting a HELOC on my current primary residence to buy out of state or continue to invest here in CA(SD area). There are so many ways to go about it, just depends on which route you want to take. Good Luck!

Hi @Kole Moore,

Thats awesome that you're trying to buy your own house! You don't necessarily have to save for the VA funding fee because it gets wrapped in the loan, but I do understand if you want to pay it during escrow. Just know that you don't have to save for it, you could just take that 2.3% into account when doing your numbers. When saving, I try to put some of my money into the stock market just so that I know it will grow while not being used. You can also use a high-yield saving account, but do a lot of research to find out what works best for you. Personally I don't have a retirement right now, the RE I own is my retirement, though I don't recommend it to everyone. Good luck! Don't hesitate to reach out if you have any questions.

Hi @Caleb Coombe

I personally have a 4 plex that I used the VA loan and I helped numerous clients here in SD to get one. Also if you have to VA loans together, so you and a friends that has VA entitlement then you can get approved for a 6 unit with one commercial space.

@Keith Jenkins,

It looks good, for you to get a 31% COC on a Va loan is incredible. Though I'm not too sure if the numbers are for househacking or when you moved out. Nevertheless the numbers are still really good. Good luck!

@Raymond Bachmann,

There are a lot of different factors and numbers that you need to take into account with this decision. When doing a cash out refi, you don't have to take all of the 50k out, you can play with the numbers so you can take some out for a down payment and still cashflow. Even if you were to take out the whole 50k, how negative is your cashflow going to be? If it's a couple hundred dollars and you're in a strong rental appreciation market then it wouldn't be a big issue. For example if you're negative $200 every month which equates to $2400 a year, but you can buy another property that cashflows $2400 a year then I would say it's worth it because you have two properties instead of one. If you're in a strong rental market then that negative $200 can turn positive in a couple years. Remember RE is a long term play so if you take minimal losses short term to get exponential return long term then that's a good bet. Feel free to reach out if you have any more questions. 

Hi @Pat Ryan,

Congrats on getting into RE! I would definitely recommend David Greene's Long Distance Investing Book. It has a lot of great nuggets about OOS and can help ease your mind. 

Hi @Jonard Lopez,

Like Ahmed said you can rent out all your rooms. On the lease agreement I would just have verbiage saying that common areas will also be used by you for the office. The Va loan only requires one year occupancy so if you lived in it for 6 years you'll be fine. Though I would check with local laws and/or HOA(if applies) if they allow you to rent by the room in your area. Feel free to reach out if you have any questions.

Hi @Shiyuan Zhang,

Congrats on getting into RE! California has little pocket areas that are more affordable than the big cities. You listed some in Long Beach, Riverside and anywhere in Southeast LA. Here in California, you get a bang for your buck when you hold it longer than 2-3 years. If you hold it longer then you will eventually have the equity and value no matter what the market status is. Even if you get negative cashflow for the first couple years, California has very strong rental appreciation over time so you will cashflow in a few years. Just as long as the negative cashflow is not substantial and you can front it then you'll be in a good position. Good luck and don't hesitate to reach out!

@Carmelo Caceres,

The route you take whether to refinance out or pulling cash out depends on your goals and some numbers. How would it look if you refinance the Va loan into a conventional? Even though your rate might increase, I would say that you'd still be in a good position because of the amount of cashflow you get. If you cash out, what would be the pros and cons? I believe you can actually do both at the same time and scale faster, but that also depends on your risk tolerance. There are many options you can take to progress, but it really depends on your comfortability and goals.

Hi @Peter Hansen,

Glad you're getting back into RE. There are a lot of variables to consider when analyzing a property. In your case, since you'll be rehabbing a bit, you would need to know the ARV and the approx. cost of the renovations. Also when you do numbers for a property, do one with you househacking and when you are fully renting it so you can see if it works both ways. Good luck and don't hesitate to reach out.