Noobie Stuck While Pending

4 Replies

Hey guys, I am just starting out and am located in Kitsap county Washington. We are currently under contract on a triplex using a VA loan. But are also looking at properties back in Alabama(where I'm from) that would cash flow well and we can afford to put a 20% down payment on easily. The rental market is good there and I have two property managers picked out as well as a contractor to do light updates and repairs.

We plan to focus our efforts back south due to the low barrier to entry and higher ROI. But still house hack here.

My problem is the triplex will take us 2 or 3 months to close due to repairs. I feel like I'm wasting time not doing anything but pre-qualifying the other properties while waiting. 

Samuel are you stuck for cash or just for time? We just went through a 6 month stuck period to get changes approved on construction changes in Boston. MA. Keepp some cash handy

@Thomas Murray We have the cash needed to complete the VA loan(0% down) Just paying for the appraisal and splitting repair costs, We also have the money to fund a traditional mortgage(20%+) for another property in Alabama. I was told starting another mortgage could cause the VA loan not to get funded. I am am not sure how it will impact the debt to income ratio.

For Samuel : once you have finished financing VA deal the 1st SFH with 20% down wll be handled as 2nd personal loan , I think. Be sure your debt ( credit cards, auto loans, store card ) are 40 % or less. 3 0% would be even better. Respectfully TomM

The VA. loan for your personal residence ( 4 plex with you in one of rhem is fine ) is ONLY for the Vet buying the prop. If you seel prop in future tpu can purchase another Va deal

@Samuel Fletcher Hardy - Sounds like you're excited, and that's awesome!  You have a great plan, you're about to be househacking with the multi-family, and that's gonna set you up for even greater opportunities in time.

Time is the thing here.  I get impatient too!  You may be like me, and you see the path ahead and are so psyched about the potential that you want to sprint to that next goal.  This is a marathon though.  You're in that place where you have that sprint energy, but need to be calm so you're ready for the marathon.

Ok, now that the mental stuff is addressed, let's talk market stuff.  With interest rates at historic lows you're buying at a great time.  Global economic indicators suggest it's a good time to prepare for a cash position to buy, which again means you're in a great position.  Be savvy and patient.  There are good deals out there now, and they're not going anywhere.  If I can predict anything, it's that in the next 12 months, there's going to be even better opportunities to buy.  Get that rental going, and your investments in the South will be ready when you are.  Control the pace of your investments, don't let your investments control you.