All Forum Posts by: Jon Lallande

@Law Dawg

Sounds good. Reach out anytime!

Rates change daily and sometimes multiple times a day. They also vary from lender to lender. So what you got quoted may change especially in todays market. Even if you did get a better rate with a conventional loan, your payment would likely still be lower with a VA loan due to not having to pay PMI.

I've had the same tenants in my place since I started renting out and they are active duty. I'd prefer to keep it that way for all of the reasons I've mentioned above. Especially in a time like now where a major part of the country is struggling to pay their rent. 

I don't know any property managers in NH but can definitely help you out once you transition to San Diego. BP has some great resources to help you find and interview property managers. Just make sure you are always getting references and multiple opinions!

Hey man, 

Glad to see more active duty members looking into using their VA loans to build wealth. I did something similar while stationed on Camp Pendleton. I used my VA loan to buy a house, lived in it for a while, and rented it out after I moved. If you are looking to use your VA loan you will want to do it while you're in and preferably have at least a year left on your contract or a job offer lined up in a similar field as your current job.

Renting to military families is typically a safe bet. You will have less problems with vacancy, military families move at all times of the year, and your active duty tenants will have a consistent paycheck. Plus, you probably won't have to worry about your tenants doing drugs or committing crimes in the house.

With your VA loan you can get into a house with 0 percent down and not have to pay PMI (private mortgage insurance). You'll also have a better rate than most other loan products with low down payments.

If you are worried about a situation arising while you are on deployment. I would consider hiring a property manager. At the very least, hire a property manager for your deployment and leave a trusted family member in charge of handling any decisions that may come up while you have limited access to your phone. 

I would advise against using hard money for your first property. Especially if you have other options. Hard money loans much more expensive to obtain and have much higher interest rates than traditional loan products. HELOC stands for Home Equity Line of Credit so that will only be an option for you if you already have a house that has equity in it.

If you're looking to get started, do some research on lenders and mortgage companies in your state. They'll be able to get you pre-approved so you know how much house you can afford. I'd also recommend finding an agent that is familiar with your situation and investor friendly. Run your numbers before you buy. Also get multiple opinions on the area and make sure you know what similar houses nearby are renting for! 

Hope this answers some of your questions. 

Best of luck! 


 

Hi Albert,

I've used my VA loan twice. I just closed on a duplex with my VA loan. I have heard of some banks not allowing you to use your VA loan for multi-family but it can certainly be done with the right lender.

Also, the guidelines state you can use up to 75 percent of the rental income from the additional units as part of your income but I’ve talked to a few lenders who wanted 2 years experience as a landlord in order to allow that. 

Are you in San Diego?

Hi all,

Hope everyone is having a great year so far. I'm looking to connect with investor friendly real estate agents in Louisiana. Specifically Mandeville, Covington, Abita Springs, and Slidell. Also would love to speak to other investors who invest on the Northshore. 

Cheers,

Jon Lallande

@Russell Brazil

Thanks for the response Russel! Have you ever heard of or experienced this big of a difference in appraisals before? I’m curious how common this is.

@Sam Shueh

That makes sense. Thank you for the response!

@Todd Rasmussen

Thanks for the response Todd! According to him, the appraiser that gave the lower appraisal asked a lot more questions and gave a much more detailed report. Doesn’t make sense to me why his house would only increase in value 10k with all the renovations and the appreciation even if for only a year.

Hi all,

One of my good friends is trying to refinance his house. Within the last month he got two appraisals from two different appraisers. The first appraisal came in at $645,000. Three weeks later, the bank ordered an appraisal for the refinance which came back at $555,000. Nothing was done to the house in the time between the two appraisals. So far I haven't found anyone who can explain why this would happen. I'm hoping the experts can help shed some light. 

To give a little insight - my buddy bought the house in January 2018 for $545,000. Since then he fully renovated the kitchen adding all new stainless appliances, quarts counter tops, new cabinets and recessed lighting. He also completely updated the master bathroom. The total for all renovations added up to $20k. 

The house is an attached SFR. 2 Bed 2 Bath. 1380 sq/ft in San Clemente, California less than 2 miles from the beach in a rapidly appreciating area. Since purchasing the house, a neighborhood next door was built with all new construction. Most of the houses being over 1M.

Has anyone ever dealt with a similar situation? I'd love to hear back from some appraisers to see what could be going on. Any advice would be appreciated! Thanks!

Hi all,

I'm starting a networking group in the San Diego area. The goal for this is to build relationships with like minded people in order to build wealth and create financial freedom through real estate.

I'm not looking to do anything formal here but this is a great way to get out, have a few drinks, and talk real estate. At the very least, find an accountability partner and meet some really interesting people! Once we get this thing going I'd like to rent out bars with an open mike so everyone can share their progress from the following weeks!

If you have any questions please do not hesitate to contact me. This is a kid friendly environment so no need to find a babysitter. Invite whoever you'd like and let's do this thing!