Investor · Boulder, CO · Member since 2010 · 18 posts · 5 votes
I'm currently looking for a house to buy that I can occupy and rent out the additional rooms. I'm buying with a VA loan and have been looking at some short sales and foreclosures in the area. Couple questions I have...
Does buying with a VA loan make the process much more difficult?
Will I need to get an inspection before I make an offer? I know with the VA loan the inspection requirements are a bit tighter.
I've seen mixed opinions on this, but how much should I offer to be taken seriously? If I offered 85% or so of the listing price on a home 25 days on the market, would that be looked at?
Any questions I should be asking my real estate agent that are important?
This would be my first home, so I'm not sure what exactly to ask.
The property I'm looking at is listed at $113k, with 3br (I can rent out 2 of them for $1000 a month), and there's a $90 HOA, on a townhouse.
My intention would likely be to live there for 2 years, then probably turn it into a rental property. Possibly refinance out of my VA loan and get a VA loan on another property.
Does buying with a VA loan make the process much more difficult?
Will I need to get an inspection before I make an offer
We currently have a VA foreclosure under contract, but we're not using a VA loan. However, the VA, like any other government entity, can be very difficult to work with. For one, they winterized the house - IN SOUTHERN CALIFORNIA!!! So we have to have them DE-winterize it before we can do an inspection on the plumbing.
Their disclosures say to perform an inspection PRIOR to submitting an offer. Huh, pay for inspections before the house is even locked-up under contract? I don't think so.
On the positive side, their contract (Purchase Agreement) is only two pages! It looks like they've been using the same form since 1948. :wink:
Offer what the place is worth to you. The listed price is only a suggestion, at best.
As long as you do not need the rental income from the rented rooms to qualify for the loan, you most likely do not even need to disclose that you are planning on having roommates. I do not think this is an uncommon practice for first time (and I assume mostly 'unattached') buyers. You will want to check to verify occupancy requirements for VA loans to make sure your 2 year plan will not violate any terms of the loan. I assume you are working with a broker on this purchase. Many times brokers are familiar with VA borrower requirements, so ask your broker about VA loan qualifications.
An offer at 85% of list for a property at 25 DOM seems like it would have a good chance of acceptance if you are pre-qualified for the VA loan, but again, a buyer's broker could give the best guidance in your local area.