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All Forum Posts by: Walter Key

Walter Key has started 16 posts and replied 327 times.

Post: Should I buy a rental investment property for my brothers

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

NO NO NO NO NO! In case I wasn't clear enough...NOOOO! Do not mix business with family and friends. It's a bad idea 99% of the time.  

Post: Why am I being ignored?!

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

I heard back from my buddy who's in the same boat as you. Unfortunately...he's in the exact same boat as you. He's renting right now since he couldn't buy. Sorry you've got to put up with this frustration but perhaps in the long run, they'll be a silver lining that you can't see just yet.

Post: Does this look like a good first deal?

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

I second @Fred Weinkauff. That's a very small margin after you factor in buying, holding and selling cost.

Post: Newbie in Jacksonville, Florida

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

Welcome from a fellow JAX area investor!

Post: What would you do? Buy and hold or flip?

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

In short...both. Depends on the market, the property location, etc. For example, I have some buy and hold rentals in Nebraska that do very well. However, I've relocated to FL and now I'm flipping because there is so many good deals in this niche right now. Occasionally I might find a really good deal that's also in a great neighborhood and I think it would be an awesome rental. In that case, I'll rehab, refinance, and hold as a long term rental. The most important thing is what makes the most sense to you and what you're comfortable with as an investor.

Post: Why am I being ignored?!

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

Is the rental on a yearly lease? How much cash flow is it bringing your way? I'm not very familiar with all the FHA underwriting guidelines but it never hurts to ask. I'd pose that question to a realtor or two that have experience with FHA loans.

Post: Why am I being ignored?!

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

Richard,

Something else you may want to consider... If you're looking to buy a multi-unit property, you may be able to use the rental income as your qualifying income? You can use 75% of the rental income to qualify. There are some specific criteria and stipulations (6 months cash reserves, etc) but it might be something worth looking into further. 

http://www.vanewsblog.com/2012/08/va-loan-reader-q...

http://www.benefits.va.gov/warms/pam26_7.asp

Post: LLC?

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

No problem.

Post: Why am I being ignored?!

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

Richard,

My apologies. After a little more digging, you are correct that the BAH stipend still doesn't qualify as "income" in regards to qualifying for a mortgage. As a Navy Senior Enlisted Leader, I'm now very interested in this issue. While I understand the reasoning for a bank not wanting to use a temporary income stream to qualify for a 30 year loan, it still doesn't seem right to me. I've got a fellow Navy Chief who just retired and is in the process of using his Post 9/11 G.I. benefits for college. I'm going to reach out to him and ask if he's run into any work-arounds on this. If I come across anything that may help you with this, I will be sure to push it your way.

Post: Why am I being ignored?!

Walter KeyPosted
  • Realtor
  • Keystone Heights, FL
  • Posts 340
  • Votes 118

Richard,

I think you may be misinformed on your G.I. Bill benefits and that's hampering your options. You CAN get money for housing in addition to your actual education costs. The Post-9/11 G.I. Bill pays your for your housing based on the BAH rate for the area you are attending school. 

http://www.benefits.va.gov/GIBILL/resources/benefi...

So, why can't you purchase a duplex, triplex or fourplex as your primary residence (qualifying based on the BAH you will receive), live in one unit while renting the others (cash flow in your pocket), then finish college, move to your job location, rent out the unit you lived in and start your investing adventure all over again?