Ok so like most people here it all started with a book mine was "rich dad poor dad". I've since have read/listen to books, read post and listen to pod cast. Done a lot of research and I know if I don't just do it I never will. I'm not going to make an cash purchase I'm able to use an VA loan which will allow me to hold onto a lot of my money for updates etc. I would love to flip but the guidelines for VA are pretty much like FHA so the house needs to be in good shape. So now I'm looking at buy and hold. My question is, would it be a good idea to buy and hold an house that I'm buying at market price or should I just keep saving and wait till I can buy an fixer upper? Or is there any other routes I should explore. Thanks
@Kenneth Keel The House Hacking option, might be a good option for you. Especially if you can get a good deal on a 4-plex. But yes, if you did a VA loan, you could do 100% LTV, but you might be limited on property type depending on the lender, since they might not do a 4-plex with a VA loan (you have to call and ask). But FHA might be another great option for you with 3.5% down (and if you ask the seller to pay a closing credit, you can get that cash to close even lower.) Just quickly looking at Zillow for Knoxville TN, I found a 4-plex at 2825 Mynatt Rd, Knoxville, TN 37918 for $369,900, bringing in $2,500 per month with all four rent. At 3.5% down if you pay asking price, its ~$13k for a down payment plus closing costs, minus any seller credits. So you move into one unit and live for free, you've still got three rented out, and you rehab the units, as they turn over. And in a couple of years you move out, and all the units are rehabbed and rented out. You can then refi and pull cash out and keep it, or sell and move on to another property, etc.
@Kenneth Keel , one thing to think about is that in this market a VA/FHA buyer's offer is tough. If you can find a lender to do a 5% conventional your offer may be more competitive. Navy Federal has a "homebuyers choice" and a "military choice" (for veterans) that require ZERO down and are conventional, but your APR may be higher. Just some thoughts..
Check out this similar question below. If I had to do it all over again, I would use the VA loan to target multi-family. If you house-hack and the property is paying for itself and cash flowing, does it matter you paid fair market value? I think you need to determine what KPIs are most important to you and stay within your crystal clear criteria.
Thank y'all very much!!! I didn't think about trying to use my VA for an multi family! I'm going to explore the info y'all provided and see what I come up with. Thanks again!!