All Forum Posts by: Mike Johns

Yes they all kept their VA entitlement in their name for the three loan assumptions I've done, so I didn't have to move into them and could rent them out.

@Ricardo Gomez

   So for each property I gain, I add $6,000 to my “safety account” I won’t touch that money unless it’s for the reasons you listed. There’s no real science behind that number. I just came up with it because my highest insurance deductible is $5,000. 

   My wife works at a property management company. So they are being managed for free, although we are heavily involved in everything. 

@Matthew Tavormina 

   I think I got rather lucky with finding them. They all came to me. I kept talking to everyone how’d I’d love to do a loan assumption if the opportunity ever came up. One day a coworker came to me and said he had a friend that needed help getting out of his mortgage. After that word got around and the other two found me. So I really didn’t find them, they found me. 

    As for how they work, they have to have a loan that’s assumable. They will contact whoever their mortgage company is and request the loan assumption packet. Then the mortgage company will make sure you qualify for the loan and after you qualify you close on it like any normal home purchase. That’s a quick overview of it. I found it difficult to find help with them because they are not a very common route people use. So I’d be happy to answer any additional questions you have about them! 

My wife and I are 27/28 years old and live in Clarksville, TN. We bought our first quadplex with a VA loan a little over two years ago in Clarksville, TN. We bought it for $305,000. We lived in one unit and rented the other three out.

Shortly after that we tried our first loan assumption with success. It was originally purchased for $165,000 and we took over the loan amount for $153,000. I currently estimate its worth $185,000. The mortgage is $1,000 and we rent it out for $1,250.

Because the loan assumption went well we decided to do more. The next one was originally purchased for $180,000 and we took over the loan for $169,000. I currently estimate its worth $190,000. The mortgage is $1,050 and we rent it out for $1,495. 

Our most recent loan assumption was originally purchased for $135,000 and we took over the loan at $125,000. I currently estimate it is worth $145,000. The mortgage is $840 and we rent it for $1,250

This week we closed on our second quadplex with a FHA Loan. We bought it for $330,000 and another quadplex down the road is on the market for $345,000, which was under contract in one day! So in just 2 years we have managed to purchase 11 doors.

How do you thank we are doing? And advice or questions are welcome!

Clarksville, TN is a really good place for buy and hold rentals. I've never had a problem with a house sitting vacant here. Clarksville is next to Fort Campbell, which is always bringing in people that are looking to buy or rent a house. Clarksville also has my some big companies that have moved to the area like Google, LG, Hankook, etc. 

My wife works in property management at Reliant Realty Property Management and they manage over 800 properties and currently they do not have any vacant properties that have not been rented. 

We have not seen the market start to level out yet, it has been increasing tremendously with the recent growth. 

If you are interested in buying a house in Clarksville, I am a realtor also, and I could help you find some properties. 

Send me a message if you have any questions or if you need help looking for properties. 

I own 3 SFH in Clarksville, TN.

I've only done 3 VA loan assumptions. I'm a 100% positive they were loan assumptions.

If the entitlement stays in their name then you do not have to live in it. It also depends on the mortgage company though. I've done 3 VA loan assumptions 1 with US Bank and 2 with Wells Fargo and had no issues. However, I tried to do one that was with Penny Mac and they wouldn't do it unless it was owner occupied.

I’ll try to answer a few questions

You should be assuming the remaining balance of the loan not the original amount. 

I do not know about the up front premium. 

To find the reasonable value you can just look the property up on Zillow and the zestimate will give you a rough estimate. It’s usually not that accurate but that number will work for that question. 

So I'm not sure but I thought you had to be a veteran to assume a VA loan. I'm a veteran so you'd have to do some research to find out if you can assume the loan.

I was able to get through to the loan assumption department and ask them questions but they were hard to get ahold of so if you ever do get ahold of them I would ask them for the best way to contact them. Hope this helps out at least a little bit! 

Hi Bill,

   I’m an investor and real estate agent in Clarksville, TN. I currently own 1 multi family and 2 single families. So if you ever need help doing business back in Clarksville I’ll be here!