All Forum Posts by: Leah Burns

Thanks fellow vets! Did/do either of you have a TSP/IRA/401k? If you have a TSP/401k you can borrow from it to pay for the rest of the work. If you have an IRA I can help you roll it over to a solo 401k. You can borrow from the solo 401k as well. You cannot borrow from an IRA. Feel free to message me if you need me to walk you through these options.

@Leah Burns i am a registered Uber and Lyft driver. Driving for a ridesharing app is a good way to meet potential passive investors for your real estate deals. As an Uber driver, I have met doctors, lawyers, judges, engineers and even a famous hip hop DJ named DJ Drama. Back then, i was not raising capital but I am now. I wish I would have networked more with some of my passengers because I could have built a large potential investor list.

If you expect the property to increase $40k, and have $30k in cash, I think you should use the cash. Make the purchases on a credit card and pay it off to build your credit. I wouldn't invest any more than $30k for a $40k return. Also, have you considered making the property your primary residence for two years? It could save you some in taxes.

As a lender, I recommend you stay put @Leah Burns - here's why.

1. You mentioned your credit is not great. Instead of repairing the house (that already has a tenant in place), repair your credit. Work on your debts, dispute past delinquencies, and get yourself to a 740. 

2. Save up your cash. You will need this cash for future purchases and closing costs (even if you use VA again, you'll need to pay an EMD). Keep this on hand for when the next opportunity arises and learn more about investing

3. Since you guys used your VA loan, you have a major advantage now that you have a tenant in your property. PLEASE make sure your taxes (on your Schedule E) show that you've been renting this out. Lenders will look at your Schedule E to determine (VA loans) if you have experience as a landlord. If you have 2 years of experience as a landlord using a VA loan, you can use the existing leases as income on multifamily properties to help qualify you for the loan. Conventional loans require 1 year.

4. Feel free to drop by the house and make some inexpensive repairs on your weekends. Learn to be a landlord and deal with collecting rents, handling issues, and being comfortable with the process.

5. It probably doens't make sense to refinance. You likely have a killer rate from 2020. Refinancing right now will not only raise your principal, but there's a good chance you will be in the mid-5's to mid-6's. Keep your cash, keep your low monthly payment, wait to access the equity when you are in a better financial position.