All Forum Posts by: Shylil Smith

We are in the process now of buying a townhouse (which in this area are just starting the upswing) that has not been renovated at all. Definitely stuck in the 80's but otherwise sound. Looks like the appraisal should come in about 12,000-15,000 over asking price/our offer, which we can use to take out in the financing for improvements. We are moving into the property ourselves for a year while we make the improvements then we can transfer into a rental. Rentals right now in the area are going for 500-600 above what carrying and holding costs on the property are per month so will be a good cash flow off our first rental. Plus the added renovation will increase sellable value by 25,000 so we can sell if we want to as well. That is our plan at least, I am sure we will at least learn something from this fist go.

Sounds good man. What type of rehab improvements do you hand in mind so far? I was thinking would it make sense to do a full rehab? Because no tenant is a perfect tenant, something will likely be damaged. So it might defeat the purpose of bringing the home back to full market value.

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Originally posted by @Kevin Siedlecki:

That is definitely one good way to get started!

I believe so lol. If it wasn't for the owner occupied requirement in the loan, I would just turn it straight into a rental.

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Originally posted by @Chad Castanino:

Sounds like what I am thinking of doing or very similar to my first deal.

Yea I think it sounds pretty solid. Our main concerns I believe will be the flip itself, and the holding costs. How did you plan to pay for the rehab?

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Is it a smart idea investment to buy a SFH property with built in equity, make improvements to the home, and hold as a rental? I would then pull out that equity and move to the next deal. I have an advantage to an owner occupied loan at the moment, so I was thinking to basically do a live and flip, because I still do also need a place to live as well. I'll also do the diligence to also make sure it'll be a great cash flow rental for after.

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Originally posted by @Mike Baker:

Yes you will have to show income from another job.

Right now you have the advantage of all your military time showing as your "Current" employment

Hope that helps.

Oh wow ok I see. I'm literally just starting out but I'm gaining a threshold of information before I make a move. I'm honestly just look to house hack at this point and get any 2-4 unit I can with the right numbers and neighborhood. Any suggestions on how to start?

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Originally posted by @Bryan O.:

Make sure you: a) Have a good job lined up as soon as you get out, or b) buy your 4-unit BEFORE you get out. The VA loan is amazing, but it's still a loan and you will have to qualify through your lender. Also, save money. You down payment may be $0, but expect to need to do some maintenance/upgrades.

Yes I understand that VA lenders want to see substantial income to qualify, but will I need to provide proof of income from another source once I get out?

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All Forum Posts by: Shylil Smith

Shylil Smith has started 5 posts and replied 17 times.

Post: Cash on Cash Return

Post: First Investment Idea

Post: First Investment Idea

Post: First Investment Idea

Post: First Investment Idea

Post: First Investment Idea

Post: First Investment Idea

Post: Flip to Hold

Post: Soon To Be Veteran

Post: Soon To Be Veteran