All Forum Posts by: Joshua Briscoe

Learn something new every day. How long has this been in effect?

Learn something new every day. How long has this been in effect?

Hi @Nathan Gesnerthe "only have one VA loan at a time" comment is completely, absolutely not true. You can have multiple VA loans open as long as you don't use up your entitlement.

I really tried to be nice about this, however the incorrect information given out needs to be corrected because you are giving wrong information to veterans that have this amazing financial product at their disposal.

"How do you know?" you might ask. Well I'll tell you how. But first, don't take my word for it. Feel free to call up the VA's Loan Center and ask them yourself so you can get your information from an actual source rather than some guy off the internet.

You can read a more comprehensive post I made about split entitlement and 1-Time Restorations here, but essentially a veteran/active duty member has a set amount of the VA loan's "entitlement" depending on the county for which they make a purchase. The home purchase price is a function of that entitlement - they can either use all of it or some of it. If the veteran/active duty member uses only "some of their entitlement," they can use the remaining amount to buy another home as long as they satisfied the occupancy requirements.

Additionally, a veteran/active duty member can perform a "1-Time Restoration" of their entitlement - which completely restores their entitlement for another use. Here's the thing with a 1-Time Restoration, however - it can only be used ONE TIME in your life. Once you shoot this shot, you do not have another.

Also, I'm a lender that is an expert on VA loans. Many of my clients have multiple properties. Many have used split entitlement, many have used a 1-Time Restoration

I'm a veteran, I've purchased multiple properties with my VA loan (even at the same time)

I'd be happy to speak over the phone @Joshua Briscoe or Nathan to clear up any details, however please make sure you understand how this works prior to executing a deal or releasing information to the public.

@Joshua Briscoe I'm here in SC and my gut says to sell. We have a great market to get the maximum out of your property. We don't keep single families unless we can cash flow closer to $200 (if financed). Yours sounds like a slim deal. I would consider keeping it if you were further along in your mortgage, but being just 4 years in means you are not paying down much principal anyway. Mine as well take the cash even if at a overall loss and reinvest elsewhere. Remember, paying off a 15% credit card has an immediate ROI of 15%.

Best of luck to ya!!

I guess COC isn't the right metric in this scenario. Return on your equity would make sense. If you sold it could you make a higher return on your proceeds than the $50-$100 a month you would get on the home?

@Joshua Briscoe I like both @Tiffany Vogel and @Coury Cast posts for you. Cashflow of 50-100 is not a very strong flow. Call it $100 and you only get $1200 a year if you did the numbers right. All it takes is a hot water tank, furnace, roof, etc and you need years to recover. Granted your cashflow could increase as time goes but so do the expenses. It would take 30-40 years (maybe) to get the 50k you could get from selling now. You also would be gaining equity over that time so it could be a bit shorter depending on the future markets.

You really should run all the numbers and see what makes sense for your situation. I would sell and use the money to possibly find something in Maine. Consider this your initiation into REI! You succeeded! You renovated a property and now you are going to be able to sell it and from the sounds of it at least break even! Instead of a fix and hold you did a flip. Plus you have the experience you gained going through the whole process!

When I started out I used Lowe's and Home Depot to finance my remodels (especially Lowe's, 5% off everything when you use their cards) I never carried any credit card debt, always paying it off each month, but I did take advantage of their 3-48 month same as cash coupons and such. You just have to make sure to never miss a payment otherwise all the deferred interest hits. It was still a little stressful, but I was able to use the income from the remodeled apartments to help pay it off. 

Otherwise grats on getting the first project almost finished!

Carl