All Forum Posts by: Jeff B.

Michael, 

I think the answer is a simple yes.  Upon interviewing potential tenants, I would explain to them the current situation so that they know that some disorder and noise could occur during their first few weeks/months.  I think it shows that you are a conscientious owner and will do what it takes to live up to your responsibilities of providing a equitable living environment.  Additionally, you need to begin creating revenue for this property. No matter what discount you purchased the property at, you have surely amassed some debt or bills that you would like to pay down or off sooner than later.  Additionally, it may take 1-2 months to get someone to move in,  you might just be done by the time this occurs.  

Congratulations and Good Luck,

First, I think this BP calculator is too complicated for the passive investor.  As I looked at your calculations, and realized you were in California, the first thing I noticed is that I think the  taxes and insurance looks really low.  Therefore, overstating your monthly / annual cash flow. I set up a simple spreadsheet that does pretty much the same thing and I have been using the mortgage calculator on http://www.calculator.net.  It's easier and I understand my own math. 

Paul, 

Best of luck recovering from your surgery. You can easily buy a duplex with your VA loan, I'm sure there are some specifics, like it has to be your primary residence. You may even have to refi before you can purchase a second. I would do some google searches on the topic. Also, the BP book "The Book on Investing in Real Estate with No Money Down" has a lot of information about "owner occupied" investments. It is a pretty good book. I"m currently on my 3rd rental, which is a duplex and despite all of the "No Money down" scenarios you hear or read about, the best thing to do is to put some cash down. Its not easy, but if you don't, you end up just chasing money. IMO. But, with that said we all have different goals, mine being passive income and early retirement assistance. If I was just starting out, I would definitely start with a duplex. Had i then, I wouldn't be getting up at 5:00 am going to work. Ha.. Good Luck.

Thank You for the advice. Agreed, the ballon is definitely not the way to go and I was having a hard time swallowing it .  But  as you mentioned if it is just adjustable after 3 years, then it may be something i can live with since the balance will be lower etc, etc.  I"ll give the bank a call on Tuesday and clarify and will ask for documentation covering the loan.  Thanks again. 

I am in in process of purchasing my 3rd rental property, a duplex, which I'm supposed to close on 8.1.16. My other loans have been traditional 30 year, but I networked to a local bank where I was trying to build a relationship to hopefully simplify future purchases. All was good, but the banker is trying to sell me on a 20 year note (which i was good with) that includes a 3 year ballon. The interest is a touch higher @ 1.5 points than a standard 20 year note and the bank re-fi's at the end of the 3 year period at the then rates which will they then will re-fi for 17 years. The only advantage to using them, is that they do not care if, at a later date I quick claim this property into a LLC that I'm considering. Most banks frown upon this and might call the loan. Any advice..I'm in a world I'm not familiar with and could use some help.