All Forum Posts by: Johnathan Kwon

@Theresa Harris Oh I understand completely about the values of privacy. I did that when I was in my 30s and had feral college students living with me. The bastards would even steal my pots and pans when they left lol.

For more clarity, I move around a lot for work. I will actually live in this space probably less than 30 days out of the year. However, the Pacific North West is where I want to call home. These 'room renter' will essentially have the whole place to themselves, and I'll have my room empty for most of the year. 

@Bruce Woodruff I understand completely that this state is not ideal for landlords, but this will be my only investment property because I essentially want to live there. This multifamily will be my home. I am invest in other states that provide more protection to landlords. I will browse around the forums and read more about these nightmares to see if it changes my mind, but to me it is worth higher risk because my goal is to get my 'forever home' for a discount. 

The kicker is I will use the zero down VA loan, so I have to live on the property. I am simply using that benefit to buy my 'forever home'. Would you still suggest not doing this still? Forgive me, this is my first day on these forums.

@Theresa Harris Wow, thanks for the input. I didn't even consider requesting those things upon buying a multifamily. 

living expenses will be the same considering that I'll be moving from Southern California. I am running the numbers on all the properties that I'm interested in, for sure. Im pretty much asking if "house hacking" has more worth than risks or if it's just some YouTube fad.

@Brandon Rush I haven't thought about that tbh. I say waterfront and Charleston but the home is a little but away from downtown and the 'waterfront' is to a large tidal creek from the Ashley River. The main attractions are about 20min drive. There is only really a decent shopping plaza a block away. 

@Troy Gandee Thanks for your reply sir. It is very reassuring to hear. I will look into adjustments regarding taxes, cost segregation, and 1031. I appreciate you bringing those things to my attention.

Hey Joe, Thanks for the reply. The numbers are simply to give an idea. In summary, I am finding a property that will essentially generate no profits with the idea that in 30 years I will have property that mostly paid for itself. I calculate cash flow for each property I am looking into, but my question focuses on whether using VA benefits for a zero-down loan is a decent investment to consider.

Hi everyone, 

I am strongly considering my second investment to be a VA loan for a multifamily home in or around Seattle. I've been approved for an 800K loan, which would put me at a 45% debt to income ratio. Zero down, so mortgage would range from 3500-4200/month on homes ranging from 650K to 800K. Rental comps vary but are relatively high given the location.

I am looking for a 3 to 4 plex that will pay for itself. I am not looking for an income generating property since I have to live in one unit. Minimal out of pocket costs for renovations or turnkey properties. Is this a rookie move? 

I am okay with paying the closing cost fees etc to get the property as well.

I am okay to pay up to 500/month on the property for additional fees: cap ex, management fees etc. My perspective is that paying 500$ a month for a 650K+ property is a decent investment; I pay close to 500$ a month in rent right now anyways. If I move to Seattle area, the previous rent would go away and id be paying directly into owning a property. 

Question I have for myself:

--Im strongly based about using this benefit and is it clouding my judgement. Is it causing me to fumble future profits because I want to use the loan and move to Washington? I want to use it because I want to reuse VA loan benefits for future homes as I move around.

--Using a VA backed loan to get a property that will essentially pay for itself... is this a newbie move or is it feasible and a logical investment?

--Will this hurt future loan applications cause it will pretty much max out my debt income ratio when applying for loans?

Are there any other questions I should be asking myself?

Hi Everyone, 

This is my first post, I'm new here, and just wanted your input on my investment. 

Bought a waterfront property for 330K in 11/2020 with a complete reno job. It is 2600 sqft on an acre lot outside of Charleston SC. Total investment to include down payment/closing costs is 175K (40K in contractor mistakes), and the house would've sold/appraised for 650-725K (multiple realtor projections). 

More details:

--5bd, 2 full bath, 2 half bath converted into 5bd, 3 full bath, 1 half bath

--1960s home, complete gut, open floor plan, new electric, plumbing, HVAC, kitchen, baths, etc. completely new house: higher end upgrades with everything tile, custom built ins, etc.  

--mortgage is 1400/month, renting for 3100/month

--I have included Cap ex, management fees, etc. NOI is roughly 8k per year

My idea was that property values are so high right now that finding another property for the right price would be difficult: that alongside the long-term appreciation value for a waterfront property.  I am also talking to my CPA of possible tax benefits for the year for renting (versus selling). Having a finished property that generates positive cash flow was the safer bet to hold onto. Sell versus rent? your thoughts? If I sold, it would've been at 15%. 

Is there benefits/advantages to selling a newly renovated home versus having it rented out a few years then selling? My realtor implied that there was since it is hard to gauge the value of projects like these. 

Thanks everyone.