All Forum Posts by: Kevin Phu

Not sure if this is the right section to post in but I can't find something fitting. This is about some issues with the BP phone app. When creating a post, the line breaks when writing the post do not stay when actually posting so everything gets combined into one giant paragraph. This post has three line breaks but it doesn't look like it (at least on the phone app). Is this a known issue that is going to be fixed?

I'm trying to learn the best way to exit out of my VA loan. I currently have a VA loan on a 4br/2ba SFR that I am house hacking. For the past year I have been renting out two bedrooms which covers more than half of my PITI. The goal of this purchase was to significantly lower my out of pocket expenses, which it has. I have one tenant moving out and when I advertised the available room to employees at the govt agency I work for, I had 6 inquires on day 1. I have no doubt this pool of available renters will be available for quite some time. So theorectically, I could rent all four bedrooms out to individuals and cash flow on the property. That would leave me with no where to live though so I would have to find another property. I could use an FHA loan but I don't like the idea of PMI for the life of the loan. What are some ways I can refinance out of the VA loan so I can use it again? I can pay 0% down and no loan fees because I am exempt from it. I could

Good to know! Thanks for the tips. I'm still looking into the market and learning what is what. You've all been great help!

@Brian Dvorak check your messages

Originally posted by @Chris Mason:

No, throw the junk mail in the trash where it belongs. 3.625% on a 30YF is great by today's standards. 

Now that rates are up and no one is refinancing, the call center refi jockeys are getting desperate to stay in business. They are proposing more and more outlandish things that make less and less sense -- I'm personally in a VA loan, so I get the junk mail and spam phone calls too (I only screw with them about 25% of the time :P ).

 Agreed. I had a lender call me today after I put a request for info out on Zillow. I very well knew I was probably already in a good spot but I just wanted to dig around for the hell of it. 

When he called me, I told him I really only put out the request because I was curious to see what people were offering and that I already had a pretty good rate that probably couldn't be beat but if there was something better, I'd consider it to reduce my expenses. When he asked  what I had, I told him " a 3.625% 30 year fixed". His response was, "yeah..you pretty much have it as good as it'll get. 5/1 ARMs aren't even though low right now. I'll take you off of our call list. Thanks." *click* lol

Originally posted by @Russ Smith:

Originally posted by @Kevin Phu:

Did they look to see how much cash you had on hand as well to see if you qualified?

I currently have a really good credit and a gross 6 figure salary. However, I don't quite have enough cash on hand for a down payment in the market I am interested in. I have an emergency fund but I'm not dipping into that. I'm working on saving more...that has been my big trip up. 

 Hey Kevin, I'm going back quite a few years since I last got a bank loan.  Lending requirements were not as strict as they are now.  But to answer your question, yes, I had to show reserves for each property I already owned, plus down payment funds and reserves for the new purchase.  I want to say the reserve requirements varied between 3-6 months of reserves for each property depending on the lender, which can definitely add up.  Fortunately for me, back then, properties were much cheaper so the reserve requirements were more attainable.  I don't know what lenders are asking for now.  And you being in CA.......I hear it's rather expensive out there!

I figured as much. Building my war chest has definitely been my weak area this past year. Battening down the hatches starting now! 

CA isn't really that expensive. I see properties that are easily obtainable...and then I wake up from my dream. Yes it is. This is why I am looking at out of state markets such as Indianapolis and Boise where my CA income can go a lot further.  

What you recommend for a SFR house hack? Carry my own homeowner's insurance and have tenants carry their own renter's insurance? If they do not want to get their own insurance, would a document signed by them stating that the homeowner's insurance does not cover their personal property and that they will not hold the homeowner accountable be a possibility?

Originally posted by @Tomer Kamil:

Thanks for your answer

Did you end up getting anything in Eagledale area? Specifically Eagledale Dr/Kalmar Dr?

How would you approach the owner in this situation? Would you have to be concerned with any kind of laws (stalking/harassing) considering you've tried reaching out to him through various channels and are now sending someone to physically approach them (assuming there aren't a PI?

Newb here just with some curious questions. Hope it works out for you! 

I have had my SFR for about a year now. I am house hacking it (renting out two of the bed rooms). With that additional rent income, my overall out of pocket living expenses are less that what I was paying for just apartment rent. My VA loan is with a 3.625% rate right now. Would it make since to look into an IRRRL refi into a 5/1 ARM to further lower my expenses and with the exit strategy of selling the property close after a few years to reuse my VA loan for a bigger property (MFR)?