All Forum Posts by: Troy Kerr

Good afternoon BP,

I recently got my first property rented.  I needed to rent fast so I lowered the price from 2200 to 1850.  The Management company gets ten percent 185.  The Mortgage is 1500.  

I bought the property no money down for 244k.  I should see about 125 dollars in cash flow.  This is my first property.  I think it may have been a mistake lowering the rent.  But a wanted to make sure that I wasn't stuck with two Mortgages.

Does this sound like any of your first timer stories?  please tell me what you think my best path forward would be?  I think she has more potential.

Is it feasible to raise the rent on the next lease?  Could I have made more cash by managing the property myself since it is brand new, built 2014, 5 beds/ 2.5 bath Norfolk, Va?  

Thanks in advance BP.

Troy,

Good evening guy,

Forgive me for chiming in late on this one.  At the risk of being redundant.  Are you saying that Home Union will do all property management and seemingly a lot more for 1 percent of the Rent?

How is this doable?  Some things just at first sight come off as gimmicky.  Second, Are they available in Virginia?  Can they manage properties that are already producing.

Upen patel,

I would only hope one day to have a fraction of your knoledge on such a topic.

I was just glad for once I was able to help someone instead of always asking rookie questions. I'll send you a request.  I'm sure I have a million questions.  Plus I grossly under qualified for your position.

Thanks for ratING me.  Though I still don't even know what that is.

Can you tell me what wholesale mortgages mean.

Thanks again.

Good day BP,

Could someone explain to me what the term wholesale means are is pertains to real estate?

Does aor allow you to buy. I would talk to you housing office there.  I was stationed there in 2010.  Met my wife there.  

I did look into starting a business there.  All I ever heard is that you needed a citizen sponsor there.  he will want the lions share of everything.  I quickly learned that Bahrain is for Bahrainis.  Ask immigrant workers.

Im sure there is some sort of SOPA agreement that conflicts with your idea.  I vote bad idea, I think you could have made a killing with military members though.

Mike,

Im working that exact situation In VA right now. I am to close on my new property that is being built on 30 sept. Ill describe what I went through below.

In my case I had not used my complete VA coverage in my initial home purchase. In Norfolk, VA Veterans get a total of 458800 in total entitlement. so lets do the math.

The VA guarantees .25 of the loan. = 244,000 (price of my current home) 244,000 x .25 = 61000.

tottal entitlement is 458800x.25 is 114700.  Then 114700-61000 is 53800.

53800 is my remaining entitlement toward second property.53800x4 =  2148000.  This  now is how much house I can afford with having to make no down payment.  

Since in my case the new home purchase price is 260000 the VA mandate is that I cover the remainder which is 260000-214000=45200. my down payment is .25 of the difference. 45200x.25=113000. This amount I have to take with me at closing. Again, this is only because I went over my entitlement.

Most lenders I that I encountered wanted to know that the original property was income producing prior to financing and taking the risk on the second one. They asked for the rental agreement and deposit check (copies) as part of the application process. This has to do with you DTI and the loan program That you qualify for.

All things considered in your situation. I would recommend refinance your Hawaii house under the VA IRRRL program. This is a quick process. Most can get it done in under a month. No income verification required.

Take the cash out option, then use the cash as a down payment on Jersey property.  175k should be able to get you about 800 thousand at 20 percent down.  The math is not exact on that.  Im originally from NY.  800k should be able to put a roof over you head in NJ.

There will arise the question of occupancy. The VA does not care about the rental as long as you have lived in it for some period of time. This period is not specified. Occupancy requirements for the IRRRL is the you have "previously lived" at the address refinanced. Brokers unfamiliar with the program will try to tell you other wise.

Begin by calling your respective VA field office. While you do that, ask for your certificate of eligibility. Have your ducks in a row prior to calling the bank. some will trying to give you crazy numbers. Know what you are talking about before calling the broker.

In my case I had to explain the whole concept a few times before he got hold of it. A few flat out said it was impossible. You can make it happen. It will take patience. The VA office will explain it all to you.

I don't know you,

There are  millions and multitude of people (the majority) searching for housing and jobs.  If the people lack  jobs and a roof they take to the streets.  Your are serving your country my friend.  Thank you for your service.

I am in the military, its not everyone whose talent involves a rifle.  Serve in your own capacity. You are leading from the front.  Keep up the motivation.  Be not deterred.  In 30 years they will wonder why they hadn't done the same.

You have my vote.

Welcome Kam,

Im also new to the site. a local here in VA to. Great to have you.

Good afternoon bigger pocketers,

While going through the motions of moving out of my first rental, I came to the reality that my asset assets far exceed my current life coverage.  

I contacted an insurance sale person. She informed me that the Index whole life is the one for me.   I realized then that its hard to shop when I don't know what are competitive products.

Can anyone tell me what are some of the best products out there and features.  I liked the fact that the index was tax sheltered, had a slew of other than death benefits and you could borrow against it.

I know that this is not an insurance site, but I image that this community, over most others would carry some of the best coverages around.  Just hoping sure I'm building on a rock.  

Thanks in advance.

Will do william, thanks.