All Forum Posts by: Sarita Scherpereel

That's awesome! Thanks for the update. Really great that you're already looking for the second one! 

Hi Justin! Welcome to the community. This a great place to learn what to do and more importantly what not to do. Even if you're still trying to save starting the educational side of this business is very important. Best of luck! 

Hi @Nicholas Halterman! Thank you for your service. I wanted to second what @Jason Wray said. You don't need to worry about down payment because that is one of the many benefits of this loan. You just need to save for closing costs and know how much of your VA benefits you have from your certificate of eligibility. If you have or qualify for disability that happened during your time with the National Guard that can increase your benefits as well. I have been lucky enough to work with several VA house hackers in the Chicago market. VA loans are wonderful but you MUST MAKE SURE YOU HAVE A GREAT REALTOR FOR THIS. This loan product has a VA inspection during your appraisal (nothing scary). But if you're realtor is not pointing out issues that could get flagged during this inspection you might have some surprises on the deal. Sometimes owners are unable to fix or update these issues prior to close. It's ideal to know these in advance before pursing the property.

I'm terrible. I wouldn't replace or changed the HVAC system until I'm ready to move out of the property OR it breaks. Or maybe you are. I'm lost in the many hypotheticals here. I don't understand why you need to do what seems like extensive work on the HVAC. Does is need new ductwork? Condenser? I'm from Houston so I understand the magnitude of having a working AC. 

 I agree that a spreadsheet might be helpful to track the cost on this. And create a clear picture for what is a head. 

My clients reach out years after their purchases to run through things like this because we know their property and deal just as well as they do. Have you sought advice from your realtor on this? 

I admire the passion to get started. I would kept connecting with lenders and realtors in the area. You sound really close to doing this without a partner. They might know programs that can help fill the gaps! Keep us posted on your progress! 

Have you connected with any local banks? We have one in Chicago that would work through the things you're lacking for a purchase and offer a first time buyer grant! Local banks can have some wonderful lending options because they want to grow the area. 

Personal Partnerships with someone you recently met are too risky for my blood. I wouldn't want to partner with some of my family and friends. It takes a very special relationship to work with someone in such a risky industry. 

Great points @Daniel Baker. The FHA self sufficiency test is the so difficult for the north side of the city and parts of the west and south sides.

@David Neubauer The standard is now shifting toward this 5% down program. FHA also has a second inspection that spooks sellers. The 5% down program doesn't have an additional inspection.

2 units get a bad rap because they don't have the cash flow opportunities that 3 and 4 units have BUT there are advantages. Numbers show 2 units appreciate higher and faster than 3 and 4 units. Sometimes a non-conforming space also helps with the numbers if you can find one that has egress and safety standards met. There are also grant programs for 2 units that have NO PMI and don't require 6 months of reserves. This is a great way for buyers to get started that don't have enough saves for 3 or 4 units and want to find an opportunity faster. Since theres more competition with 3 and 4 units.

Happy to talk more about your goals offline. Best of luck! 

Definitely check out some of the realtors on here. Go to the build your team tab!

You don't need to explain your rental price to the tenants if it's justified in the market. They shouldn't ask questions as long as it's in alignment with the fair market value. You can ask your rentals for rental comps or look at rent-o-meter for estimates. I think it's a good idea to see what is currently active on the market in your area. That tells you were your competition is at and will help you keep the listing within a reasonable range. 

In my market, adding a bath can increase the ARV of the property in most markets. This definitely comes in handy when it's time to refinance. If you're ARV is $215k it seems like the numbers work in your favor. Also, if you needed to sell this as a flip, buyers would more likely purchase something that has a 2 bath verses 1 bath. That's an added level of this deals potential.