All Forum Posts by: Nick P.

I have a property in Grovetown, GA that i am interested in leasing.  I was wondering if anyone used Meybohm to take care of their property?  Are they reliable?  Any stories?

Thank you

Bill, I apologize but I am not sure I understand the method. I will definitely do some research on this to understand what are the steps; could you give me an example on how I would start this process? Thank you in advance.

Bill, you mention assuming a VA loan; how would one qualify for that? I like the idea of purchasing from other service member who are PCS ing...

Bill, thank you for the advice. I have less than 4 yrs until retirement thus the feel of urgency to get established. I will look into the conventional financing when its time for me to PCS (hopefully for the last time). Thanks again.

Fred, i am not familiar with "subject to's", however I've heard of lease to purchase. I will have to do more research on the subject. Thank you for the tip.

Matthew, thank you for your reply. The more i think about it, i realized that buying a new TH at that price could of been a mistake in my part. The thought of selling it when i move has been an option. I hope to at least break even if and when i sell.

Let me start by saying BP has opened my eyes and i wish i found you guys before i started my REI adventure. With that said, here is my situation. I bought a SFH April 2009 in Grovetown, Ga. using a VA loan $182,600 30yrs @3.875%. Moved out June 2011. I have been renting it out since then for $1350/mo. I owe $172,366. Unfortunately, i was breaking even on my payments and was not making a profit; only until this past May 2013 when the bank conducted their yearly reassessment, i finally started making a profit of $40.00/mo. Due to my job, we moved to Maryland in which i bought a Townhouse (TH). I financed it using a 2nd tier VA Jumbo loan for $336,400 30yrs @ 3.25%. I owe $333,156. I bought the TH with the intent to use it as a rental property when we move again; projected at 2015 or 2017 (depending on my job). We plan to move back to GA and move into the first house. I would like to buy a third home, either to flip for some capital or buy and hold as a rental for passive income. My problem is i don't have any capital to invest. I used my VA benefits as a way to start my REI portfolio and to get ahead in the future, however almost 5 years later, i feel like its taking too long. I feel like i need to make an adjustment, but not sure were to go from here. Any suggestions or ideas would be appreciated. Thank You.

Kelly,

Your husband's eligibility will be key. Contact the VA regarding the eligibility. They can give you some numbers to compare. Regarding requesting to reestablish his entitlement; from what I read, reestablishing entitlement simply means reseting your entitlement back to the standard $417,000 (depending state and county limits); however, the only way to reestablish entitlement is to either payoff the first VA loan by selling the property or refinancing it to a non VA program (fha, conventional, ARM etc.). Again, I'm not an expert, so please validate this by calling a loan broker and/or realtor who is familiar with VA programs. I found this info out by doing the same thing you are doing; research and asking.

Nick

Hi Bill,

No problem. I just finished a deal and did a lot of research on the subject. Your job is difficult trying to keep updated in hundreds of programs. I am lucky to have a good team backing me up (loan broker and realtor). Now this site; just adds to the package.

Nick

Hi Kelly,

I currently have a Home with a VA loan and rented it out. I also have a 2nd home that I bought using my VA entitlement. Bill is correct; however:
A) Yes. You can rent your home as long as you lived in it for 3 years (VA rules and regs) B) Yes. You can buy a second home as your primary home using your VA entitlement. To a loan broker who understands VA benefits, it is called a 2nd Tier VA loan. I stated that because not all brokers or banks understand VA loans let alone offer 2nd Tier VA loans. VA will cover up to the standard value of $417,000. Take your first VA and subtract that from $417,000 and that can give you what VA will cover. VA has also updated the value they cover by state and counties. Google VA Entitlement by counties, and you may find an increase from $500,000 - $750,000. I believe they will consider that a VA Jumbo Loan. Example, if your home was in Columbia county GA, the limit is $417,000. If you intend to buy in Ann Arundal County, MD, your limit jumps to $500,000. Again like Bill said, they are Entitlments NOT a loan. So it is suseptable to the Sponsors eligibility, credit and what the banks offer. C) No unless you you are not eligible and need to recertifiy your VA Benefit. D). That depends on your state and county laws. Call a realtor or a property manager and they can assist you. If you do rent and make a profit, prepare to be taxed on your gains. You still get a tax deduction on the interest and if you do any improvements or repairs while it is rented, you can deduct that as well.

I hope this helps. Good luck and happy investing!
Best Regards
Nick