All Forum Posts by: Ryan Thomson

@Rayan Perez Definitely use that VA loan! You earned it. Look into house hacking. Renting rooms or finding a place with a separate unit that already exists or could easily be created is a great way to earn extra cash flow and live for free.

If you do want to get another house in the next year, you could refinance your VA loan into a conventional loan and than reuse your VA loan again. If scaling is on your radar, then thinking through exit plans is very important as it sounds like you may want to scale and move to the next property in a year. Bedroom rentals are a little more work to manage but are a great exit plan. You could buy near a college area and rent to student groups. Other criteria I look for in a SFH house hack: an easy way to split into multiple units, a walk out basement, an ADU, a garage I could convert, or lots of bedrooms.

@Emre E. Good thoughts and questions. I have some thoughts. 

I think thinking through exit plans is very important as it sounds like you may want to scale and move to the next property in a year. Bedroom rentals are a little more work to manage but are a great exit plan. You could buy near a college area and rent to student groups. Other criteria I look for in a SFH house hack: an easy way to split into multiple units, a walk out basement, an ADU, a garage I could convert, or lots of bedrooms.

I wouldn't put 20% down to avoid PMI. If you are doing it as a hedge against risk or a decline then maybe. But PMI is such a low percentage that it's not worth putting 20% down in order avoid. I think about it this way: You are putting a much higher downpayment to avoid PMI. If you calculated that ROI it would be terrible. ROI = (PMI saved/extra downpayment). Put that extra downpayment somewhere else if you are only putting 20% down to avoid PMI.

The other reason I wouldn't put down 20% is that it eats up more cash and prevents you from getting into another property more quickly.

Great idea @Nathan Maier! 

@Rayan Perez The house hack ROI is pretty sweet and a great way to get started.

Happy I could help @Emillio Henry! Student rentals are a great way to go though. Extra cashflow is nice. 

@Gabe Shapiro congrats on all the sacrifices you made to get where you are now. I know that must feel really good. 

@Emillio Henry I think adding bedrooms is the only thing you should prioritize. I would probably put a washer/dryer or two. Four seems excessive for 10 people. The rest of the things you mentioned, I strongly believe the tenants will take care of themselves. Don't overthink it!

@Mark Hirleman is doing a lot of student rentals in Colorado Springs. He might have some good advice for you as well. 

Hi @Larry Tuch maybe connect with the college transfers department to find students starting at the Spring Semester in January. 

I think having someone sign a lease until July is a great idea so you can work on getting a group that knows each other in there together August 1. 

With that being said, I have two properties near colleges that I planned on student renting. But I haven't needed to yet. I've had a lot of success finding young professionals to rent it month to month. I put my listings on Apartments.com and craigslist and I seem to get more quality inquiries from there. Much better than the "is it available" inquiries from Facebook. I am switching to longer term leases though as the month to month got a little annoying this year. 

@Zachary Beland have you considered asking the family if they would seller finance? Then you could buy your current home and continue to work on your DTI and savings and buy the duplex when you are ready.

Other option: Set up a rent to buy option with the person who owns it. Lock in a purchase price now. Rent it yourself or to tenants and then buy a duplex when you are ready.

The option I like best though is the house hack idea from @Eddie Brady . This would allow you to get into the duplex for 3-5% down and you can use the income from the other half to help you qualify. You would potentially live for free or make money (especially if you rented out the other bedrooms in your unit).

Then in a year you could do it again with a new duplex and easily rent out the unit you move out of in your first duplex.