I've been looking at buying a SFH (to live in) above $200K but having no luck with cash flow (for when I eventually move out) - got one more potential lead through seller finance. What's your opinion on using a VA loan to secure a home 0% down that I'll be at for 3-4 years, use the Air Force BAH to gain some equity to sell for appreciation, fingers crossed? My goal at this point to save my capital to BRRRR multi-family properties, once my family settle into a SFH.
What are some better strategies I can be attack with the VA loan given this market?
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
If you are going to owner occupy for a year or 3-4-5....use your VA loan....or see if San Antonio has any down payment assistance programs. I saw one advertised that is about 5% of purchase price foregivable in 3 years....so that might be even better than VA. Buy as cheap as you can stand....you already have a goal to move in 2-3-4-5 years, so this is not your forever dream house....cheaper purchase price means lower rent in the future and a bigger pool of renters.
I think the best initial investment you can make is buying your own home....while you are in it...fix it up....do a project a month....paint, yard, kitchen, bathrooms, clean, whatever else needs to be done. Now is the time to do your sweat equity while you are young....what can you do to add value?
Once you build some equity...let's say in 3 years....then look at options....is it a good idea to rent...or flip? Don't over analyze now and not do anything....best way to get started is to get started.
Real Estate Agent · San Antonio, TX · Member since 2020 · 75 posts · 88 votes
3y
Hi Dallas!
I think securing a home using a VA loan is a great strategy for a house you will be living in for several years. Not only do you have the obvious 0% down, but you also are entitled to lower interest rates and lower closing costs. I also know of a program called Military on the Move that gives you a 20% rebate on your agent's commission at closing.
Once you are ready to BRRRR, then you can look at strategies like applying for a home equity line of credit (HELOC) to provide your startup capital. If you decide to sell your home, there are options such as using a hard money lender. Most hard money lenders cover 100% of the renovation costs.
If you have any other questions, feel free to message me. Hope this helps (:
Real Estate Agent · San Antonio, TX · Member since 2016 · 67 posts · 58 votes
3y
Hey @Account Closed I can send you a contact that would be a great lender resource for you to chat with. She specializes in not only VA loans but also working with investors. Check your PM's.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
If you are going to owner occupy for a year or 3-4-5....use your VA loan....or see if San Antonio has any down payment assistance programs. I saw one advertised that is about 5% of purchase price foregivable in 3 years....so that might be even better than VA. Buy as cheap as you can stand....you already have a goal to move in 2-3-4-5 years, so this is not your forever dream house....cheaper purchase price means lower rent in the future and a bigger pool of renters.
I think the best initial investment you can make is buying your own home....while you are in it...fix it up....do a project a month....paint, yard, kitchen, bathrooms, clean, whatever else needs to be done. Now is the time to do your sweat equity while you are young....what can you do to add value?
Once you build some equity...let's say in 3 years....then look at options....is it a good idea to rent...or flip? Don't over analyze now and not do anything....best way to get started is to get started.