Running out of time!! Need advice.

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Running out of time!! Need advice.

Frank A Castro
Member since 2020 · 60 posts · 32 votes

Hi there everyone, 

I introduced myself around 2 months ago in the BP family. I have been looking for my first investment property since a bit before that. I haven't been so lucky. 

I am currently targeting small multifamily homes ( duplex, triplex ) , so I can live one unit and rent the other one out ( house hacking 101)and I have already been preapproved with a VA loan. I've placed multiple offers already through my realtor agent ( offering more so buyer pays closing, offering asking price while I pay closing , offering over asking price while I pay closing ) and none of them have worked, not even with the possibility to counter offer. Putting money down is currently out of the game.

The reason why I am running out of time is because my lease is almost due and I will be going on deployment , leaving my wife and  our little one , that is on the way . 

Is it really that hard ? How do I know if my agent is pushing hard enough to get the deal. I am the one finding the deals, doing the numbers (obviously)  and asking most of the questions, only using my agent to see the house and place the offer.

I am looking for property in the Va beach , Chesapeak , Norfolk area in Virginia. 

Thank you everyone in advance for taking the time and read through this. 

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Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
5y

@Frank A Castro

I'm not familiar with your market so can't really help you... just wanted to say THANK YOU FOR YOUR SERVICE!

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  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    5y
    Originally posted by @Frank A Castro:

    @Stephanie P. Thank you for the heads up. @Patti Robertson contacted me and gave me a basic run down about the current situation , lol. Basically a bad time to get in the game. 

    She knows what's going on down there.

    2Reply
  • Joseph Brown
    Investor · Charlotte, NC · Member since 2021 · 40 posts · 18 votes
    5y

    @Kade Lucero @Frank A Castro I like this advice. Soo many more SFH options vs multi family out there. With the short timeline find a SFH that has some flex to rent rooms, in-law suite, basement.

    1Reply
  • Ken Naim
    Investor · Lake Worth, FL · Member since 2016 · 233 posts · 140 votes
    5y

    @Frank A Castro Thank you for your service Frank. House hacking as you mentioned is an investment and most investors will tell you only a small percent of offers get accepted.

    So first of all, don't get discouraged. Most of us have been there. The VA loan takes longer to close in addition to the stringent inspections and many multifamily owners being investors themselves are not keen on the timeline and many know if they'll pass the va inspection or not. It maybe a blessing that you didn't waste time or money on a property that wouldn't pass.

    In a seller's market, seller's will take a slightly lower offer, rather than a VA loans which have a bad reputation. I recommend, making sure the offer mentions that your situation, that you are active duty being deployed, with a young child etc. There are many sympathetic people out there and it might make the difference. Also a $5k increase over asking will add $21 to your monthly payment and may be enough along with the note.

    Remember even with a break even or slightly negative cash flow, you get the mortgage paydown, tax benefits and the rents will go up over time. Plus the money you save on rent and the piece of mind that a landlord can't increase your rent.

    Along with the advice others gave you to look off market you'll find the right house.

    Good luck with your search.

    1Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Darren Ruch Thank you for your advice sir. I will take that in .  

    0Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Kade Lucero Sorry for the late reply. It has been a crazy few days. 

    Due to the lack of multifamily and our need to find a place , we have shifted now to single family homes too. Also, I have changed agent and , even though I haven't won any offers yet , the difference in the motivation is day to night. 

    A single family with a in law suite came in the market yesterday but it was gone before I could put an offer, and it was a good one . 

    Thank you for the heads up , definitely looking this up .

    0Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Ken Naim Thank you very much for your response. 

    That is something that I will definitely add in my offers from now on . 

    Cheers !
      

    1Reply
  • Kade Lucero
    Realtor · Salt Lake City, UT · Member since 2020 · 26 posts · 23 votes
    5y

    @Frank A Castro that’s awesome! Keep looking and things will come up! I just made an offer on one today, cross your fingers! You’ll have to run numbers, but you could even add a kitchen to a home with a walk out basement or even convert a split entry by putting a door at the top and bottom of the stairs and it’s like a mini apartment building. I’d have your new agent look at previously sold mother in law apts and knock on their door before I’d come out of pocket to add a kitchen, but it might be worth considering if there’s limited inventory.

    Good luck and keep us updated!

    1Reply
  • Tim Winter
    Broker · Phoenix, AZ · Member since 2015 · 151 posts · 55 votes
    5y

    As you've noticed, if you're not finding the inventory in MF, I would try SFH with guest house, casita, in-law suite, or even basement or large out building. Something that you can convert into a pseudo-duplex are the best deals right now for owner occupy that we're finding.

    Also on the agent front, have you tried your local REIA? You might try there and ask around with other investors to find a more investor friendly agent that'll help you find off-market properties and run numbers. Before I got my license the best agent that I knew owned more rentals than me, and always kept me on track with just the simple comment "resale value" when I'd go off the rails oohing or ahhing over man caves or large garages. A good agent can help you find deals, a great agent will help you "make" deals happen that you might not have thought of or seen.

    On getting your offer through, as some people have mentioned letters help if you've got a family and you're pitching to a seller that has some emotional equity in the property, but cash always works best. Over offer, escalation clauses, higher earnest money, waiving contingencies (though don't waive the inspection!), shortening inspection periods, shortening closing periods by getting fully qualified with your lender and guaranteed close in 2-3 weeks, etc. You might also look into a semi-hard money lender or private lender to do an all cash offer to up your perceived value to get the deal locked up, and roll some rehab into your loan for when you refi out with your VA loan later.

    Hope this helps. Good hunting!

    0Reply
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