All Forum Posts by: Reymon Hernandez

Hello, I just helped my close friends by their first home. It was a newly flipped property in a great neighborhood. The home inspector did not call out that their second story laundry room does not have a drain pipe or drain pan for the washer. They just purchased a new washer and dryer and the installer told them he could not install the washer without a drain pipe for the drain hose or a drain pan. They have called multiple contractors and the bids have been all over the place. They are wondering whether they even need it and reached out to me for advice. I have no contracting background and I am afraid to give the wrong advice. Is this a must? Should they spend the money? If so, what's the normal cost for something like this, specially seeing that the laundry is on the second floor. Thanks in advance BP!

@Chris Mason Thank you for your response as well. I do have an intimate knowledge of VA loans and on a normal home purchase I would have very little no problem getting it accepted however my question was related more towards hard money lending and other unconventional financing.

My reason for asking was due to fact that VA loans have stricter inspection and appraisal requirements and does not allow for me to get financing for damages or repairs. I guess I should have explained that a little more. However, I have been reading and following other posts on the forums and I think that with all the input I have received here, plus all the posts on the forums plus the podcasts I have been listening too, I have a better understanding of which way to go. Thank you. I greatly appreciate your input.

@Gordon Cuffe Thank you for reaching out. I appreciate the input. I am currently working with a local lender here in Sacramento and have talked about a few details and as you said they do not consider the rental income for the qualification. However, we have looked at the numbers and have a good understanding of what we will be able to qualify for, we just have to wait till after I file my taxes next year. I would love to hear more about what you are doing for your investors and maybe get some input about being a landlord here in our area. I will reach out and maybe we can put something on schedule soon. Thanks again for your response. 

@Wes Blackwell Thank you so much! I did not expect such a thorough response (which is why I asked a lot of questions). This is all great information. I see that you are here in the Sacramento area and also have a real estate license, I'd love to catch up over coffee or something if you're interested. 

Let me know and again thank you for that, I will be looking at all the information you provided and putting it to good use.  

Hello BiggerPockets Community, my name is Reymon Hernandez. I am new to the BP community and I am also new to the real estate investment world. 

I am currently a licensed Realtor in Sacramento CA. and after several years of helping local families buy and sell homes I have decided to take a more serious look at RE Investing. 

This year I worked with several 1031 exchange clients which forced me to learn more and dig deeper into the benefits of a 1031 exchanges. This got me really interested in learning about all of the benefits of owning rental properties and such. I have now decided that while there is great potential in helping families buy and sell real estate, there is greater potential in actually owning/investing in it. 

My Current Situation: 

My wife and I moved in with her parents recently to be able to save enough money to purchase our own home (SFR). However, I have successfully convinced my wife that buying an owner occupied multi unit property such as a duplex would be the best way to go for our financial future (It was not easy, but I did). 

We have a small amount of money saved up and have been getting our financing in order to buy a multi unit property, I am a veteran with VA Eligibility which allows me to buy up to a 4 unit property under $417K with no money down. However, I do not know if that would be the best way to go for this situation. As a realtor I could represent myself in the purchase and use the commission funds to put back into the property with an approved VA Loan. However, I have a few question I would love to get some help with.

Question: 

1. Would you recommend buying a multi family unit before buying a SFR (or vice versa) and why?

2. Would an owner occupied VA no money down loan be a good way to go or should I consider looking at some of the other financing options discussed in the podcasts and webinars, since we do have some money to put down?

3.  What major things should I consider aside from the cap and the cash on cash return when purchasing an owner occupied property?

4. What tips would you offer a newer person like myself starting off now or if you currently own properties in CA. What should I be aware of before becoming a landlord in CA.?  

5. Lastly what are REA meetings and where do I find one? I have been hearing speakers on podcasts talk about Local REA meetings and I hate to admit that while I am in Real Estate I do not know what a REA meeting is. Dont even know if I am spelling that correctly. 

Sorry for the long post, but if you have read through this entire thing I would love to get your thoughts or inputs on any of the things I brought up. It will be greatly appreciated. I am happy to be part of this wonderful community and look forward to getting everyone or anyones feedback. 

Thank You!

-Reymon