All Forum Posts by: Troy Luster

Have you applied for these, or is this just research? Don't get too wrapped up in the numbers and just do it. Figure out what you initial goal is. Is it for less cash out of pocket up front? Or a lower payment every month? Also look into when the PMI will go away as this varies.

I don't know of any free services.  There are a few services I use to do this.  They cost $50-$60/ month.  Mojo and RedX are the services.  The quality of the numbers is low, but you may have a better conversion rate.  I'm restricted in my state from calling certain numbers when people opt out to be called.

I assume you are going to live in the house.  If you don't have the cash for repairs, yes.  Overtime you should set up a reserve fund that you can use to cover your own repairs.  You'll have more flexibility with a personal emergency fund.  Do your research for cost and coverage to be sure you are getting the best deal.

John:  Looks like the USDA has created a program for this.  They call it Combination Construction to Permanent Loans.  Here is the link: https://www.rd.usda.gov/files/RD-RHS-SFHGSingleCloseLendersBuildersInfo.pdf

I'd find a local Realtor/Loan Officer that has done this before to help you maneuver around the pitfalls.  Don't think you'll be able to pull out cash though.  Building costs more than purchasing an existing home in most cases.  If you want to later refinance for case out, you will probably have to find a house that needs work.  Get it for a good deal (70% or less minus rehab costs) and then refinance to pull out cash.  Good luck.

If I could do it all over again I'd buy a 4-plex with my first VA loan. Upgrade to Pro, the property analysis tools alone will provide enough value to pay for itself. You may not do the proper analysis if your plan is to rent it out to friends. Analyze the deal as if there were only one person/family paying rent.

Seek out other lenders even if it's just for backup financing.  I'd try to find a lender without the conditional sale approval.  This early in the process adding a contingency, or requesting to add a contingency could turn off the sellers.  Can you handle both loans with no problem?

Agree with @Joel Owens.  Being a licensed Realtor/Agent holds you to a higher standard even if you are a brand new agent.  I've seen a lot of investors not want to get their license due to the liability.  You'll need to seek personal legal counsel (not legal counsel of the brokerage) before pursuing any course of action.  They'll be able to let you know where you are taking risk.  The brokerage will cut you loose if your personal actions reflect badly on the brokerage, even if you tried to do the right thing in regards to a tenant/lease to own.

@Lance Lvovsky @Carl Fischer @Account Closed Thanks for the comments.  I may transfer in conjunction with a refinance.  Or just roll the dice.  I'm more of a ask for forgiveness type guy.

Welcome to BP!  Thanks for your service.  Are you retiring or just getting out?  If you can, you may want to consider making your first purchase while you are still in.  A number of years of job history make you look more stable for a loan.

Agree with others @Tony Gunter @Ryan Murdock call your broker.  I'm doing a similar transaction later this month.  Our brokerage allows agents to keep all the commission on personal properties after you make the brokerage a certain amount.  Let's say with our average commission that is 4 houses.  I'd also talk to an accountant.  Could reduce some of the tax burden to take a commission vs. proceeds from the sale depending on how long you've owned the home vs. your agent expenses.