All Forum Posts by: LOUIS LEATHERS

@LOUIS LEATHERS - what's arguably more important than your personal, monthly income is what reserves/rainy day funds you have. The beauty of that VA loan is you can buy a nice multi-unit with minimal capital outlay. If that leaves a fair amount of capital in your pocket to cover, say, 3 months of vacancy and a little left over for that fridge that will die one day, then I'd argue you're on the right track (most likely).

On one side of the coin you don't want to over-leverage yourself, however I don't disagree with your spending a little more to get into an A neighborhood with higher rents and more reliable tenants. I've personally found very little vacancy on my higher rent, more expensive neighborhood, nicer apartments. Also, sometimes spending a few bucks more gets you into a better building with less deferred maintenance and issues. Does that save you from $10k in windows you need to replace because they haven't been taken care of by the seller?

Therefore, I don't think it's a bad idea to spend a little more if you get a little more...and you have savings to back yourself up in the event you have a rough month or two. Hope that helps!

It did, thanks!

0 Votes

Originally posted by @Brian Garlington:

@LOUIS LEATHERS

How did you get approved for those amounts on a VA Loan? As a veteran, it's been my understanding that the max you can use for a VA Loan is about $729,000 or so even on a four-plex and even then it has to be in a hyperexpensive market like where I am in the Bay Area? Now I do know a few months ago, a bill was passed to eliminate the VA Loan limits but I was told that this won't go into effect until January of 2020.

Have you found someone who is doing VA Loans for those amounts above?

2019 VA Loan revision. They revise every so many years. and its also dependent on your location. like I think its 1.2 million if you live in CA.

0 Votes

Thanks everyone, for your response. I'm definitely interested in getting into one of those A class neighborhoods, I would have reserves to cover and emergency or vacancy for 5 or 6 months. It is scary that mortgages are more then my monthly income, but even harder is finding a property that cash flows using a VA loan. Any suggestions on that?

0 Votes

@LumiIspas you sound really knowledgeable. That was good info. Do you invest in Chicago? and what neighborhoods would you recommend I look into?

0 Votes

Using my VA Loan my preapproval goes as follows:

1-Unit: $484,350

2-Unit: $620,200

3-Unit: $749,650

4-Unit: $931,600

I live in Chicago, IL and I am tempted to buy a 4 unit in a great neighborhood (and live in the basement) at or around my max approval; if the numbers work of course, but even if they don't and I have to make up the difference of $400-$800 dollars, i figure its worth it to be able to control a million dollar property in an A class area in Chicago. Plus it could act as a forced saving and buy the time I retire and its paid off. I'd be winning! Anyway my concerns are: 1. I only make 5k a month. and 2. If there's a vacancy, I have a large gap in rent to cover, with the mortgages ranging from $4,750 to $5,438.

Anyway, I'm curious to get your thoughts? What actions, advice, tips and recommendations do you have you me.

Thanks.

-Louis from Chicago.

0 Votes

Has anyone been able to find a cashflowing deal using an fha loan with 3.5% down? ..most of the deals i've come across even if the property is discounted you come out of pocket.

0 Votes

HOUSING CRASH!! PANIC! ..So i'm about to close on a 4 unit. its a house hack, but cash flows negative. however the rents are below market and will be raised, and i plan on refeing in a year or two with my va loan to drop my pmi, but with news of a market crash, and economic collapse, and rates expected to hit 6% i kinda want to cancel the deal. What are your thoughts and How has talks of a crash and high home prices affected your investment strategies?

0 Votes

All Forum Posts by: LOUIS LEATHERS

LOUIS LEATHERS has started 2 posts and replied 7 times.

Post: Should you use the max amount of your preapproval?

Post: Should you use the max amount of your preapproval?

Post: Should you use the max amount of your preapproval?

Post: Should you use the max amount of your preapproval?

Post: Should you use the max amount of your preapproval?

Post: How would you use an FHA loan to turn into cash flow, etc.

Post: NEGATIVE CASH FLOW AND HOUSE HACKING