All Forum Posts by: Joe G.

@Anthony Larweck

Welcome to BP. I am still active duty so any question from this side please ask. BP is a wealth of knowledge. Know what you are looking for and search for it, buy and hold, flip, wholesale, Sub2, etc…seek and you shall find. Ask away.

Have success. 

joe

@Justin Tahilramani

I miss Woodbridge, VA (I lived there for 3 years). The $120 is gross cash flow. I am open to how to figure out 'true' cash flow. I do budget for repairs, but in the last 6 months I have repaired roof leaks ($300), painted the interior ($1800), and there is a siding issue that needs attention ($600). This is not common, however only seems like it is getting worse. Rental inventory in the area is higher, lots to pick from in the neighborhood and surrounding areas (this doesn't help me I know, but I am the one of the lowest priced for the area). The property is in GA, I currently live in WA.

How would selling it improve your investment portfolio and get you to your goals sooner?

Lastly, this is a great question.  My main goal is to supplement my retirement income with $5K in passive income.  Selling could help me pay down a second mortgage I have on another home thus increasing my cash flow or I could save the money until a better investment opportunity comes up.  

Thank you gentlemen for the advice.  I will keep the forum posted on my decision and why to help anyone else in this situation.  

I am trying to decide if I should keep renting a home or if I should sell it and invest the equity.Below are basic facts and then concerns I have.

3 Bed 2 bath rancher with one car garage

Fenced in backyard

Build in 1997

Located near military installation (minor reduction affecting the local installation ~5%)

Cash flows ~$120 monthly after PM fees

Est value at $103,900

Mortgage at ~$75,000

HVAC replaced four years ago

Roof original to home

I am an absentee landlord

Vacancy rate, < 5% over past 7 years

Concerns:

Maintenance, roofing, paint, rugs, appliances, etc are eating my budget.Recent $1800 whole interior painting, exterior roof leaks, and wood rot pending.I know the roof will need to be replaced with 5-7 years.

Well, maintenance is my only real concern as it is eating my budget.I am thinking of taking the money and paying into other homes I have to provide better cash flow (I have a second mortgage on one home I could almost pay off with the cash) or just save the money for another purchase/repairs.I have three other homes.

I am open to all thoughts and questions.

Disappointingly I have attempted to use USAA for loan five times in the last ten years, they have been no where close to getting me the best rate compared to other banks or brokers.  I have expressed my disappointment to the representative many times, but am always told this is the best they have.  They lose my business every time (four home purchases and one car).  What are other's experience with USAA and rates?  

Has anyone used Navy Federal's 100% financing for home purchase?  Does Penfed offer anything similar?  

@Dominick Alfano

Welcome to posting on BP.  I have never been in your situation, however I have read about it and seen it on TV.  I highly recommend this book:

Every Landlord's Tax Deduction Guide

http://www.amazon.com/gp/product/1413321143/ref=pd...

I purchase it every year to ensure I am on top of the latest laws and rules.  I know many hire CPA or experts, I do not have a complex situation and numbers come easy to me.  This book is a great base knowledge start for a low cost.  Easy to read and understand also. 

@Earl Jefferson

Earl,  

  First I don't see your situation as 'between a rock and hard place'.  $30K liquid cash to invest…some would really enjoy your position.  

Second, to help focus you I pose the following questions:

-what return on investment are you targeting?  

-what is your risk tolerance?

-how much involvement with the investment do you want? 

-how much time do you have?  

I believe you are referring to hard money lending or private money lending.  This topic has numerous posts and podcasts about it.  Well worth the listen and read.  The other options you have really depend on how much time you have.  Flipping requires lots of your time while buy and hold, if you use a property manager, requires less of your time.  Are you staying in the military?  

joe

@Brian Olson@Jeff G.

Gents,

  I have used military BAH as a starting point for my rentals for years.  You also quickly understand who your clients will be in that area.  There is much discussion about decreasing BAH rates to 95% or even 90% of housing costs and I think the military is currently at 98% of housing costs.  Keep in mind military BAH is tax free, so if you really want to use this system as a guide you may want to add tax.  In the end, military service members looking for housing will start with using BAH as a guide and then add or subtract with dual income or looking to save money for utilities/bills.  

joe

@Dominique Fryar 

Welcome to BP!

I also live in Dupont, WA.  When you have some time we could get together to discuss in more detail your thoughts and ideas.  

BP is a great site to gather all the information you need to get started.  

Take care and welcome to the site. 

@Steve B. 

Great run down with the details.  

While I hold SFH in military areas and use PMs for them, in your situation I would advise to sell. I personally don't like the cold along with the weather issues that come with it. BAH rates are decreasing. While the military is not going away, the vacancy risk will raise. What would you do with the ~$26K from the sale? Another way to look at the situation; you earn about $6,500 per year if all goes well. It would take you about 4 years to earn that much by keeping it fully rented out. What could you do with that money in the next four years? Can you earn a better return? How much time do you have to devote to this? Do you have to travel to sell it?

In the end, I would sell.  I would like to know what you decide, keep us posted.  

@Elizabeth Colegrove @Brandon Turner @Nathan Emmert 

I have heard about Navy Federal. I have not used their services yet because I have taken advantage of the VA Loan (twice) and other financing before I go to them for their 100% options. As I exhaust my financing options, I plan to use Navy Federal for my next home purchase. I do recall, but have not vetted, the owner occupy requirement for the 100% options they offer.