Active Duty...VA out of question, need help. Not Pro Yet...

12 Replies

So I recently purchased a "home" in Illinois, for me and my family with the VA loan, and I am renting it out until I finish my service which is 1 1/2 years in Salt Lake City, UT. By the end of the year I would like to have either my first flip, or my second buy and hold property under my belt. I have to advise, i do not have funds to support this but I will continue to gather and try anything within reason as necessary. I am just starting out I might add, but I am looking for any advice that would help me. any suggestions? Thank You BP

Thank you for protecting my freedom @Jahmar Childs . There is an investor here (her name is on the tip of my tongue) that her husband is in the Navy and they have a few houses from their different stations. So it is very doable. Is there a specific reason the VA loan is not an option? You may also find the podcast with James vermillion of value. He was stationed overseas when he first started out. I'm gonna go look for the Navy gal. I can see her just not remember that name.

Good luck.

@Jahmar Childs  

Keep reading on here, listen to the podcasts, ask lots of questions and live below your means and save money. With that house rented out and Navy W-2 income you should be able to qualify for another property and you could even get another VA loan depending on how much your first one is for. You could also look into an FHA loan with a 203k on a foreclosure to fix up. Lots of ways to reduce the initial money out of pocket but make sure you are buying the properties right, that is where you will make your money. I am also an active duty investor so let me know if you have any questions. Good luck!

-Bill

William Allen, Real Estate Agent in FL (#SL3330247)
850-483-1761

Neil Schoepp Her name was Elizabeth Colegrove, Podcast 103, a good one to listen to for those of us in the military. @Jahmar Childs maybe you can look into refinancing out of the VA loan on your current rental IOT is it for your next purchase?

@Neil Schoepp Her name was Elizabeth Colegrove, Podcast 103, a good one to listen to for those of us in the military. @Jahmar Childs maybe you can look into refinancing out of the VA loan on your current rental IOT is it for your next purchase?

Remember the intent on a VA loan is owner occupied. Proceed cautiously!


Rob 

Rob Thompson, Real Estate Agent in CO (#FA100043080)
(719) 440-6626

Concur with Rob above. 

Did you ever live in the house in Illinois? If you used the VA loan to purchase the home in Illinois but never lived in it then you probably committed some sort of mortgage fraud. Your intent to eventually live in it is most likely not kosher at all. I would be very careful in pursuing additional loans on your VA entitlement like Elizabeth has done until you are physically in the house.

VA loans are a great program for us Vets, but misuse/abuse of the program can lead to very severe penalties. Its OK to rent out a VA home...but only after you have lived in it, not prior to.

If you did live in it, then all above is moot..rent away. 

If however you only intent to live in it some time in the distant future you are running a pretty serious risk of being put into the hurt locker. I would refinance out of the VA loan into a conventional product ASAP, even if it involved bringing money into the deal.

@Neil Schoepp    @KIMARD EGLETON  Thanks for all the shot outs! I really appreciate your kind words and thinking of me!

My husband is active duty. We buy bother personal that we turn into rentals when we are transferred and pure rentals, that we rent out from day one. We had done very well splitting our VA loan into two houses. Once we used that up we have used 5% conventional loans for personal properties. While personals due require you to live in them. they are perfect for us "transient" military members who want to turn our homes into rentals when we are transferred.

Feel free to pm me if I can help! Good luck

Thank you for all the advice and support, all of you. 

I have lived in the VA purchased home, it is where we want to end up after my service is up. @KIMARD EGLETON I will definetly look into the refinancing out, that is not a bad idea.

Thank you for all the advice and support, all of you. 

I have lived in the VA purchased home, it is where we want to end up after my service is up. @KIMARD EGLETON   I will definitely look into the refinancing out, that is not a bad idea Ha. Thank you again.

 @Elizabeth Colegrove I would love to hear more, I will send you a PM. 

@Jahmar Childs  

Another member of the club here. I would caution you on risk. VA loans are great, but remember there is no down payment and the cash flow numbers will be difficult. If you are transitioning out of the service I would recommed looking at properties that can "cash flow" after a 20% down payment. Last thing you need is a huge risk as you transition out of the security blanket.

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