All Forum Posts by: Kevin Hunter

@Katrina B., @Julie Sisnroy is 100% correct.  What you will usually find is over the top advice from a lot of people with a little experience.  The reality is that you need to do what you are comfortable with and at a risk level that you can accept.  If you are having a hard time finding value-add deals there are several things you can do.  1.  expand your search. 2. relax your criteria 3. change your approach 4. do nothing.  Obviously #4 is not an option, so cross that one off.  

There is nothing wrong with purchasing through a conventional or commercial loan on an investment property and putting 25% down if you are in a position where you can afford it and you are comfortable with the risk (part of the risk here is having that 25% deployed and unreachable).  It is all personal preference and is up to you.  Yes, in a perfect world, everyone would be able to buy properties well under value, rehab them for huge gain, refinance with no closing costs, find a world class tenant who pays top market rent, etc....  often times that is not the case.

Good luck and let us know what you decide. 

@Shaquille Shaw, do it.  Talk to the folks recommended and get moving.  I did exactly that back in 2004 and I still have the property today.  It does great for me and I have a bunch of equity.  Good luck!

@Shane Hutchins, I would call lenders in Fort Leavenworth. Ask around on BP, or call some friends or acquaintances in the Leavenworth area and find a great realtor to work with. Have them recommend lenders that military families use or that they have worked with in the past. Your LTV on the current mortgage will not impact your ability to get a mortgage in Kansas. Your debt to income will, but not the LTV.

@Shane Hutchins, @David Pere is 100% correct. Your current LTV has no bearing on your next mortgage. If that was to imply a refinance out of your current mortgage into a different mortgage type or rate, that is another story.

Not to oversimplify, but if you are just looking for pre-approval at your next duty station, call a different lender.

@Christopher Sellar, I love your question and your strategy.  A lot of folks have given great advice so I won't belabor those.  One alternative is to utilize leverage up front and set the balance aside in an account as @JD Martin mentioned, and re-evaluate your position every six-12 months.  If you find yourself in a position where you just aren't comfortable with the debt, pay it off then.  Leverage will not always be as inexpensive as it is right now.  When I started, I got an investment loan for 7% and I was ecstatic. 

Another factor to consider is the length of the plan.  If it is truly a ten-year plan that is one thing. If that is an arbitrary timeline you picked, then take a hard look at it.  Are you ten years into your military career and looking to retire in ten years?  That is a different story.  Just be clear about the why behind the goal and then work to it.

In your OP, you stated you know leverage is an option but you "just like the idea" of paying the props off up front. No one can tell you what is right for you.  Do what is right for you?  Just do it from an informed position.....

Good luck.

@Lars Hasseler, AWESOME!!!  I hope every person on here who asks for a refinance recommendation because they can't find one (but have only called two lenders) reads this post and learn from your process.    When I finally found mine in CT I had called or email almost 100.  It takes time but is worth it.

Well done and congrats!!

@Aditya Maini, this looks like a solid plan, now that you have re-calculated the maintenance, insurance, etc...  I agree with @Chris Nerio, you have to plan for lower rents up stairs due to the shared bathroom.  Other than that, it looks good and demand will be there.  Good luck!!

@Stephen Gay, welcome to BP.  Lots of great people and tons of great information to learn here.  Get involved in the forums and I recommend you listen to the podcasts.  They are free, and are literally an audio library of information on getting started, scaling, etc....  There is a great military network here as well.  Good luck!

@Rachael Osborne, congrats on the desire to get moving.  Analysis paralysis has a lot to do with emotion. Try to do whatever you can to remove emotion from the equation.  Analyze a thousand deals.  Just find them on any real estate sale website and analyze them from an investors point of view.  Not sure where you are in northern Virginia but try 100 deals in Arlington, 100 in alexandria, 100 in Springfield, 100 in Woodbridge, 100 in Manassas, 100 in................. you will come to learn what a good deal is a what a bad deal is.  You may not find a single deal that works.  Then work your analyzer backward.  What price would it take to get to a good deal?  How can you get there?  House hacking might be a good way, multi-family might be a good way, value add, etc.....  This will take some time.  Once you have done that, while you continue to educate through books podcasts, and you figure out the end game, or goal, or future state, whatever you want to call it, you will be in a position to get started without emotion, while making informed decisions.  

Also remember, is there ever a BEST time to start?  Probably once in a generation.  Is there ever a worst time to start?  Probably the same.  Have you ever heard someone say "Geez, I wish I had started later..."  

Good luck!

@Rey Gonzalez, if the numbers work, they work.  Invest.  If they don't work, keeping looking until you find one that works.  You will find folks like the one you referenced all over the place.  Just get moving!  Good luck!