Just Some advice on what you think my best course of action.

32 Replies

Originally posted by @Dantuna Pernell :

Catalino Rodriguez yea from what I have seen so far only places to find the MF are the Baltimore area, Hagerstown then some of the small western towns in MD. I'm really looking into maybe checking out some other states and their MF. That's nice that you have already got your pre approval out the way. The great thing about my job is I get to go away for a year and that why I want to get a property with FHA or VA while I'm away for the year then by the time I come back I can refi hopefully out of the property into another fha or va back loan.

Thats sounds like an awesome job!! And using your VA loan gives you a ton of leverage. Have you looked at other markets. The other markets I have been looking into are Memphis and Cleveland. Both have a ton of affordable MF properties. I will be heading to the states for Thanksgiving and while there I plan on checking both of those places out.

Originally posted by @Bill Kenny :

@Catalino Rodriguez I work with an investor who was stationed in South East Asia and bought his first 6 units in Hagerstown from the other side of the planet. He's under contract for another duplex and has managed the whole process without seeing his units in person. The true definition of leverage... He's built great relationships with his Agent, property manager, inspector, contractors, Lender & insurance all done with a cell phone and email. I think we had to fedex docs for wet signatures but that was it. He's smart and successful and making it happen. 

 Hi Bill,

How can I get more info about this ! I am definitely intrigued and would love to discuss this further because that's what I am looking to do as well. 

Southern MD here too. Dantuna..man it looks like you have a lot of options going for you. That VA loan is awesome since it’s 0 down.

I also agree with Malcom..not much as far as Duplex’s or Multis around the area. Where were you trying to buy in Lexington Park Malcom?

I currently have a rental in California that’s doing pretty well. Looking to buy 2 more in the near future but need to get my HELOC on lock.

Not sure why it posted twice?? 🤷🏻‍♂️🤦‍♂️

Originally posted by @Malcolm Lawson :

Hey Dantuna,

I am a vet and now a MD Realtor. Yea, there are not too many multi units to invest in here in MD but you do see them occasionally. There are plenty of single families to invest in though. An option you might want to look into is purchasing a primary residence then moving out and turning it into a rental. With the VA loan, you have a maximum cap for your loan and this is determined by the county you are purchasing in. For example, Anne Arundel County MD is $500K. So what this means is you could purchase a home for $250K then move out and rent it then purchase a second home for $250K. The property just needs to be your primary residence at the time of purchase. Only real tricky part is your lender usually won't give you your second loan unless you have had a tenant paying you rent for at least 3 months.

The biggest advantage to going this route though is you can make these purchases with $0 down and get a great interest rate of probably around 4%.  A typical loan for an investment property is around 7% - 8%

What area in MD Maryland do you live in?

Aren't you only allowed to have one VA loan out at a time? Seems to be the consensus around my workplace...

@James Barnes thanks now my biggest step is to find deals to put some offers in on. I really want to look into MF because while I'm away my mortgage is being paid and if I did a small MF unit and by the time I come back I can refi out if it. IF I did an FHA or VA on an SF ill have to make the payments. It's so many ways to go so I'll eventually get there.

@Bill Kenny would love to chat with you sometime, I have been very intrigued in the Hagerstown area for a while now for MFR's.

Originally posted by @James Barnes :
Originally posted by @Malcolm Lawson:

Hey Dantuna,

I am a vet and now a MD Realtor. Yea, there are not too many multi units to invest in here in MD but you do see them occasionally. There are plenty of single families to invest in though. An option you might want to look into is purchasing a primary residence then moving out and turning it into a rental. With the VA loan, you have a maximum cap for your loan and this is determined by the county you are purchasing in. For example, Anne Arundel County MD is $500K. So what this means is you could purchase a home for $250K then move out and rent it then purchase a second home for $250K. The property just needs to be your primary residence at the time of purchase. Only real tricky part is your lender usually won't give you your second loan unless you have had a tenant paying you rent for at least 3 months.

The biggest advantage to going this route though is you can make these purchases with $0 down and get a great interest rate of probably around 4%.  A typical loan for an investment property is around 7% - 8%

What area in MD Maryland do you live in?

Aren't you only allowed to have one VA loan out at a time? Seems to be the consensus around my workplace...

You can have multiple VA loans at a time.

The VA benefit (insurance against foreclosure, allowing 100% financing) is only up to $424,100 however*. So if you already own a home that cost $200,000, then you have $242,100 left in benefit. If you wanted to purchase more than the remaining benefit, your down payment would be 25% of the difference between the sales price and remaining benefit.  So if the home you were looking at had a sales price of $300,000, then your down payment would be 25% of $57,900, or $14,475.

*NOTE: some, if not many, markets are high-balance markets and the benefit goes above this number. In Baltimore County, however, the total VA benefit goes up to $517,500.

http://www.military.com/money/va-loans/home-purcha...

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here