Investor · North Liberty Iowa · Member since 2018 · 7 posts · 3 votes
1 year ago while serving in the Middle East I decided to begin studying real estate investing. I am finally at the point where I will be able to jump into the real estate game. I am starting with purchasing a 3 bedroom (two BR upstairs and 1 finished basement) 2.5 Bath townhome in North Liberty IA for $167,000. This TH has a rough in for a third bathroom in the finished basement which I plan on finishing. I am asking for some guidance on how to maximize cash flow with roommates while I'm living there before owner occupancy. As well as tips on seeking out solid roommates outside of peak rental season.
Additionally if anyone would like to offer advice on reusing my VA loan for my next property when I turn this one into a rental please do!
Investor · Iowa City, IA · Member since 2017 · 137 posts · 85 votes
6y
Lieutenant,
Thanks for your service and happy Veteran's Day!
NL is a nice market for rentals. We used to own a few TH's in Coralville. You probably won't have much trouble finding roommates as the communities in the Corridor are pretty transient. Zillow, Craigslist, and Realtors could all be helpful. Best of luck - let me know how it goes!
Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
6y
@Ben Frazier is the basement a walkout? If not, check how it can be possible. Having an entirely separate suite is a big deal if you want to short term rent it, and is great for long term since it would not be more roommates. Then short term or long term your extra room upstairs and you will be set!
If you are disabled at any rating you can reuse your VA loan without paying the funding fee. Otherwise, it doesn't stay a great loan. I like the idea of alternating VA, FHA (or other low-down owner-occupied loan), VA, FHA... my family scenario stopped me on the second VA, but that gives you 2 years per loan to build 20% equity to refinance out to a standard loan.
Investor · North Liberty Iowa · Member since 2018 · 7 posts · 3 votes
6y
@ AJ Leman thanks for your comment, I've had a craigslist ad up for a couple weeks and still haven't heard anything. Also, Zillow will only allow me to post the house renting as one whole unit but not as individual rooms..
Investor · North Liberty Iowa · Member since 2018 · 7 posts · 3 votes
6y
@ Bryan O. unfortunately it is not a walkout. It has a below ground egress window, but at least that makes it a rentable room! Fortunately I am not a disabled vet, but could you please tell me more about this VA funding fee. I'm also interested in this FHA option I hadn't considered alternating between the two.