All Forum Posts by: Richard K.

So on the two VA loans I currently have outstanding, one is at 3.5% the other 4%, if I refinance those is it likely that my payment will go up? Or do you think a convention loan APR will stay close to the same? Can anyone else confirm this, if I refinance those 2 loans, will I gain the entitlement back and be able to use it with no cap? I was told recently that since it's not my first time buying, that there would be like a second tier restriction in which there is a max dollar amount based on county.

Kevin, can you go into more detail on what you mean when you say drop PMI with less than 20% equity in the property?

I purchased a town home in 2015 with my VA entitlement, lived in the unit for a period of time and then rented it when I left for a deployment. Closed on a single family residence at the end of 2017, utilizing the remainder of my VA entitlement (plus had to put around 50K down to secure the loan since I was over my entitlement cap). I received orders to Virginia in 2018, and rented out that property. In May of 2019, I purchased my third home in San Diego with an FHA loan. At the time I did not have 20 percent to put down on the loan to eliminate the PMI so I opted to only put down 3.5% with the intention that I would refinance into a conventional loan 6 months later. This house is my primary residence. Without divulging specific numbers, I have almost enough cash in savings to refi my FHA loan into a conventional at which point I would like to rent this third home and get back in the market to purchase a multi-family unit, in which I would rent one of the units to myself. What is the best way to move forward with this? Leave the FHA loan in place, continue living in current property. Use the liquid cash I have saved to find a multifamily and get a conventional loan to fund it? Am I able to use the VA loan again, even though my VA loan is maxed- I have heard that the President signed a bill that lifts the VA cap? Leverage the properties I already own to fund my next investment- I likely have around 150K in equity between three properties. 

I agree. This could be a very controversial topic. On one side it's a business aspect, your roommates don't have to know who owns the property, or how much you pay. Just that they agreed to rent a room from you for a set amount of money. I don't think it's too unrealistic in the SD market to rent a room for around 1,000 dollars given the shortage of real estate and knowing as a service member myself that the military pays out 1,900 a month for housing allowance. Providing a place to live and they still get to pocket half of their allowance. On the other side, it may not seem fair and I understand what you're getting at, but this is just one idea to build capital initially. If I can subsidize a renters property and make 12,000 in a year with little effort, why wouldn't someone try it?

@Kevin Phu I am an Aegis Fire controlman, moving towards working in the medical field fixing linear accelerators for Varian. Expecting to make 65K my first year, and looking to see what I can do to increase my net worth. I'm very disciplined when it comes to money, and live frugally. Haven't researched too much into what would be a good way to start out investing, hence why I'm here. Read into a few posts about house hacking, from what I understand that entails moving roommates in to pay the rent and possibly making a positive cash flow. I pitched this idea to another E-5 that just moved out here and doesn't have an apartment yet. For instance, renting a 3 bedroom for around 1,500 and renting each room for 1k. Could turn into a free space to live and 500 dollars positive cash flow each mo. I know their are lots of stipulations, such as lease agreements with clauses that won't allow sublets but worth looking into IMO. Not real sure where to start, and need to do a lot more reading; San Diego seems like a tough market, but I'm motivated.

Hello Everyone,

I've read through a few threads on here and decided to join the site. I am active duty U.S. Navy, about to separate in December this year. I am interested in becoming a real estate investor to build wealth. I picked up a book from my aunt who invested in real estate a long time ago and currently owns several rental properties across the U.S. and it peaked my interest. I closed on my first home last year in November, it's a tri-story town home in Eastlake, CA. It's currently rented out but isn't producing any positive cash flow, I am breaking even with it. Looking to meet with some investors and learn the ropes. I am a little concerned about starting off in San Diego, cost of living is very high- and the market seems to be extremely competitive. Currently on deployment until Nov. so I'm looking for any advice I can get, and if anyone has any documents I could read I've got nothing but time while underway to read and learn as much as I can until I get back.

Thanks!

Richard