All Forum Posts by: Vincent Gurko

Hello all,

I am a newby spending much of my time reading, learning and attempting to analyze potential deals (really just listings I come across in areas I am familiar with) and I've found one that has really struck a chord. 

I've narrowed down my goal search to a moderately distressed home with work that I can do myself or contract out to the GC's I know, and something that is already, or can be converted into a MFH - duplex minimum but preferably triplex or 4plex. I would be using my VA loan to house hack.

So I came across this listing in an area that isn't too far from where I live now - easy commute to work - but I am curious of some of the specifics.

- Claims the owners 'Currently the owners have architectural plans for a triplex which could be easily converted.'

Not sure what exactly this means. They have things drawn up and documented with the county? What should be my first steps in finding out more about these plans, are they sound, potential cost in doing so, etc.

- Sold in 'As Is' condition

Would this affect financing? If so, are there things I can do myself in order to still acquire this property using my VA loan to get it up to standards for approval?

- It is located directly across from what looks like a catholic/private school

Is this good or bad? High traffic, but does this create an incentive for renters? - As a note, I would live here for as little time as possible, leaning towards house hacking a second property should the first go well.

 I am writing this out quickly before work, will be adding more in throughout the day/this evening with more questions.

Thanks in advance to all reading, and happy holidays!

Appreciate your response Kevin. I am very interested in speaking more about your own multi-unit property you are doing this with - I think I need to iron out a few details before I jump in, but this is sounding like the route I want to go.

I am looking primarily in Philadelphia suburb areas, not exactly in the city - I don't think I could swing living off my savings and using it to rehab at the same time, so I need to maintain at least part time work to cover my bills.

Thank you for the reply! 

So as I wrote my previous response, you answered my question as to what type of houses can be purchased with the VA loan. A quadplex sounds ideal - I will start my search. Thank you.

Thank you for the reply. 

These are exactly my intentions. I am currently living in a House Hack, participating in my free time. I think I will hold off until I am finished here, and get my expected pay out from this before I jump in on my own then.

I am not familiar with how the VA loans work outside of them needing to be your primary residence, and under livable conditions upon purchase. At least, this is what I have been told. I need to educate myself on the in's and out's of the VA loan options I think. I would much rather purchase a multi-unit property if the finances line up - a duplex or triplex preferred but most I have come across seem to be far from where I am working which becomes an issue.

In the Philadelphia area

Originally posted by @Jon Reed:

I would get into Real Estates. :)

Hop on over to the Military Investing forum and start reading through all the threads. I am also pretty sure there are a couple VA RE investors who put out some great content... can't remember the name of the blog though... I am sure some quick Google work will bring it up.

Thank you for the advice, heading over there now :D

I thought this may be an obvious, but interesting and useful topic to start. I have my own scenario that I am curious to see what you all would consider doing should you have found yourself in my shoes.

25 years old

Low income, labor for a GC

Veteran, access to VA loan

~$40K saved

720 credit score

Carry little to no debt (occasionally carry a 2-300 balance on my cc, that's it)

Can't think of other details to include, but this might serve as a good starting point.

Appreciate responses, and look forward to the discussions ahead.

@Cameron O'Connor

How did you educate yourself so well in analysis? Any books to recommend?

@Aaron K.

Thank you for pointing that out. Repairs and vacancy are left out. Wasn't sure how to value it because most units only have the appliances like fridge, stove, dishwasher to contend with, alongside the toilet/shower. Also most things i would fix myself at cost, unless it was something more serious plumbing wise.

How do you account for vacancy, is this a percentage of a years worth of rent?

I will try my best to be short and concise.

Available capital: $40k

Condo(s) I am considering: $30-60k

Estimated CF: 450/month, 5400/year

ROI: ~8-12%, depends on which condo specifically

They're all 1 or 2 bed, 1 baths.

Minimal work needed in units, I can do majority myself, but have two contractor friends .willing to help me out if plumbing/electrical is needed outside the basic stuff.

My money is currently invested and has only averaged about 4% the past 5 years, this past year having been down about .5%.

Would love to hear any thoughts on this scenario, i am in no rush to make my first Deal, but i would certainly rather have my money be better invested where I could actually see some returns (even the lower estimated 8% ROI sounds nice).