New investments mortgage questions

6 Replies

I'm about to get out of the service and I'm trying to buy a true four-plex. What's the best way to go about it before it gets taken off the market?

Are you asking how to finance it or? Do you have a property in mind and want to make an offer before it goes pending? Just trying to gather what info you're seeking in order to help you... 

#1) Have a way to finance it. Get qualified see what you can/cannot afford. 

#2) Analyze the property you find after knowing what you can purchase to make sure it's a solid cash flowing property. Check out the benefits of owner occupying it if that's what you intend to do. 

#3) Put offer together

#4) Make offer 

#5) Sit back and wait. 

Since you are in the service, I would use a VA loan, you will have to live in one unit for a while, but the rent from the other three should cover your mortgage.

Find a local bank or mortgage broker who is familiar with the VA process & go from there. Once they say what they are willing to lend to you make an offer.

Originally posted by @Jesse Waters :

Since you are in the service, I would use a VA loan, you will have to live in one unit for a while, but the rent from the other three should cover your mortgage.

Find a local bank or mortgage broker who is familiar with the VA process & go from there. Once they say what they are willing to lend to you make an offer.

 Here's the thing though. My ex-wife destroyed my credit while on my last deployment and I'm still building it up. What other options do I have?

The lender may look at you more favorably when the four plex you make an offer on has current tenants.  Lenders love to see assets that are producing cash flow

Bad credit doesn't prohibit you from getting a VA loan, it might make the requirements from the bank steeper. I would talk with a loan officer, depending on how your credit looks now, how much debt you have etc, you may find out that you aren't as limited as you think. They may also suggest a few things to help improve your credit.

You can also consider seeing if the seller will go for a lease option type plan with you, then complete the full purchase in a year or two, basically owner financing, but it sounds more straightforward in my opinion.

Originally posted by @Jesse Waters :

Bad credit doesn't prohibit you from getting a VA loan, it might make the requirements from the bank steeper. I would talk with a loan officer, depending on how your credit looks now, how much debt you have etc, you may find out that you aren't as limited as you think. They may also suggest a few things to help improve your credit.

You can also consider seeing if the seller will go for a lease option type plan with you, then complete the full purchase in a year or two, basically owner financing, but it sounds more straightforward in my opinion.

It does prohibit you from getting a VA loan if it's below there requirements. I've called 26 banks and it's all the same. I am currently improving my credit at the moment but it's not where it needs to be yet to get a VA loan while his opportunity is available.

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