All Forum Posts by: Emery Jensen

 Thank you!

@James Hamling beautiful, this is super helpful. Thank you!

@Wilson Vanhook Love it! I appreciate you playing devils advocate. You mention some very great points.

I’m looking at some options to bring in more rental income for some clients while reducing some risk. What are some typical rates one would charge an arbitrageur looking to rent a space out for AirBnb. Let’s say for example a 3/1 bath in a desirable area of San Diego. 

I’d love to hear your thoughts/suggestions. 

The VA loan requires you to live in the property as your primary residence which is defined as at least 51% of the time. That being said, I'm not sure if just living there for the weekends is satisfactory. I know of people that disregard this rule but it's ill-advised to do this because if the lender finds out about this fraud, they can call or the whole amount of the loan to be due.

As far as getting approved for the loan it shouldn't be an issue as long as your DTI is good. Remember they can add 75% of the potential income that the small multifamily will produce to your DTI ratio. Just be careful and don't overleverage! Good Luck!

Lot's of good responses here, but this is indeed a tough situation. 

From the sounds of it your mother may know what she is doing and is just simply trying to bounce back after the unfortunate bankruptcy. These things happen to millionaires and most make a come back. 

Personally I would take that into account and just look at the flip she wants to do as any other deal you may possibly do in the future. Ask to be shown the numbers, EVERYTHING. From the financing, rehab, holding and closing costs, and comps in the area. It seems like you could use this as a valuable experience to learn a lot. Obviously though, if the numbers don't work or something stands out to you that's too risky, then don't follow through with it and respectfully decline, or help her find the next potential deal. 

Fellow Veteran here, and licensed agent in CA (San Diego). I feel your pain as far as trying to invest in an expensive market! I also recommend reading David Greene's book for out of state Real Estate Investing, great read! 

As far as using the VA loan, you can't use that for out of state properties as they require you to live in the property as a primary residence. You have to live in it for a year, only then can you rent it out. Good news though! You can purchase up to a four unit multiplex, live in one unit and rent out the rest. As long as your DTI is adjusted with your lender to account for 75% of the potential income that the property would bring in you can get qualified for a hefty loan, all while using the benefit we earned to use zero down! I've seen people approved for 1.25 million dollars loans on a quadruplex here in San Diego. It's truly an awesome tool to get started.

@Jordan Babich Hi Jordan! 

In my area of San Diego, CA it's pretty hard to find a good return on investment to house hack when buying a duplex, (this is assuming you need a move in ready property using an FHA). If you can, try running some numbers on a triplex or quadruplex and those will typically yield better cashflow.

That being said, 500 dollars cashflow doesn't seem bad as long as you have all your expenses and fees accounted for. Like Nicholas said, showing your numbers will help us better assess the property for you. Also sometimes its beneficial to look a year or two away from initial purchase and look at the potential appreciation/raised rents from improvements, that can change how good a deal is drastically. 

Whether it's a good move or not depends on your standards as an investor though. Does this property meet your specific standards? 

Hi David,

I just checked out that report and all of your calculations look pretty complete. Although I didn't see any fees accounted for property management. Were you planning on being the manager of the property yourself or perhaps it was an oversight. Either way, this looks like a screaming deal as long as the ability to get good tenants in there isn't much of a trouble. I'd say pull the trigger and good luck! 

What's going on Bigger Pockets!?

I've been looking at investing for cashflow in the Midwest and I plan to specifically target residential multifamily properties for now at least. Going through the markets I noticed A LOT of inventory that is quite old. The construction dates for most properties I've seen are built early 1900's.

Is this something I should stay away from, or should I be able to rely on the integrity still for quite some time. I know that my predictable maintenance and repairs may be more compared to a newer home but I'm more so worried about huge repairs popping up unexpectedly.

Thank you for any insight!