All Forum Posts by: Joe L.

@Tim Hermanthanks for your reply. This deal would be "house hacked" or owner occupied. I'd like to exhaust my VA benefits which can be 0 down @ 3% (there is a funding fee). After, speaking to several property managers they suggested the vacancy rate to be at ~3%. Thoughts on the deal at full asking?

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@Barry Pekin thanks for the information. Can the deal be structured for the seller to pay the “assignment fee”? I am looking to finance the deal and the “assignment fee” is considered a non-allowable. I’ve heard mix information from lenders and the title company. Any insight will help!

I came across a deal from a wholesaler and would like to close using my VA benefits (VA mortgage). From what I understand the assignment fee would be a non-allowable closing cost. I would like to roll the assignment fee into the loan.

I’m looking for recommendations on structuring the deal. Should the seller pay the assignment fee if I include it in the sale price? All things considered it should appraise as well.

In the meantime I’m waiting to hear back from the title company. Thanks!

Kevin, it's great to hear you have some nice goals set! I am by no means an expert and have had similar interest in using the VA loan for investment purposes. I have bought two homes in the last 2.5 years with the VA loan program. The first home is now a rental and the other is my primary home. I believe if you purchase a home with VA backing you must have intentions of using it as your primary residents. Also, it has to appraise and pass a home inspection which makes it more difficult for a poor condition flip. It may be a good idea to find a home and live in it about a year than continue the process with the next home as long as you can stay below the VA program limit. I am interested to see if there are better options for flipping a home! Good luck!

Originally posted by @Charlie Fitzgerald:

Hi @Joe L. I think you need to follow a debt reduction program (Debt Snowball plan) and eliminate your consumer debt while maintaining the rental that you have until the point that you are debt free.  If you need some guidance on this, I recommend Dave Ramsey's Total Money Makeover program.

Your current equity position is not sufficient to do much for you, and the loss of the depreciation, appreciation and monthly cash by selling, as well as the costs to do so really just compound your situation.  I have a belief that you don't sell what you want to buy.  You want to be a Rel Estate Investor...so don't sell Real Estate that you have (unless there is a compelling benefit to do so).

Good luck...pick a plan to retire your debt...Dave's is one of the best...stick to the plan...it will work.

 Hello @Charlie Fitzgerald you have shared some great advice and I will certainly use it. Dave Ramsey does have a proven system that I plan to follow as we have been working on paying down debt. I have been to Chris Hogan's seminar where he speaks to Ramsey's strategy and I truly enjoyed it. So far we are on track to pay our debt off and wanted to weigh our options out with our current situation. I agree with you on the equity not being quite enough to make the sell. What number would you recommend selling at to make it worth wild? your quote is great "don't sell what you want to buy"! I used it to explain the advice I received from you the wife. It made perfect sense! I have to ask what were your first steps getting into real estate? I look forward to your response.

Originally posted by @Jeff Greenberg:

The 40k in equity isn't going to go very far after selling expenses. I would hang onto it and work on some ways to pick up some more. Pay down that consumer debt.

 Jeff, thank you for the advice! Our goal this year is to pay off our consumer debt. After thinking it over hanging on to the property may be the best bet. 

Hello, I am looking for some tips or advice that will help me get into the real estate business. I will try to keep this short while giving enough facts for helpful advice. I currently have two homes that I have acquired as primary residences. The first home I bought I now rent out for 200 above my monthly mortgage payment. I still owe roughly 160k and its value today is 200k+. My initial thought is to sell it and pay off debt and start basically at ground zero. I plan to payoff my credit card debt of about 15k or take the profits of the sell to purchase my first investment property. I have steady tenants and I am not in a rush to sell, but just anxious to do something new. My plan similar to most people here which is to supplement my wife's income and eventually mine for the sake of our kid/family. I understand there are a thousand ways to "skin the cat", but I am looking for some feedback and guidance. REI is a dream job of mine I plan to pursue! Thank you in advance for any responses!

It is just a matter of recording the deed. We have both compromised on the repair, but it sure has been rough ride. Thank you for the reply!

I just recently closed on a home on a Friday and the property did not record the deed. My agent helped us get in that Saturday with an addendum allowing us to move in and the property would record asap. So, this is where it gets tricky because we experienced a sewage backup in the 2 bathrooms. It caused a moderate damage to the walls and floor boards. At this point we have been going back and forth on trying to get this taken care of the right way. The investor sent his handyman to change out carpet and inspect the damage. I had a flood specialist follow up with quality report and found it was more than just carpet damage. I have been willing to allow the handy do the work if they did it the right way by removing the 4" floor boards and drying the wall( they denied to replace sheet rock). Not to mention the day the handyman who came out failed to mention he disconnected our laundry drain and that led to flood number 2 the next morning. This has been a headache to say the least. Who has the obligation to fix the problems since the home is not technically ours yet? The listing agent is making this very difficult for us to proceed with damage repair that cost them no more than $1200. They have asked my agent to pay half but they denied since it would be a mediation liability for them. Any helpful advise would be great!