Need some guidance on my first multi-family

[Ricardo R Barrera]

I need some insight before making a full commitment to this plan. I want 2 4plex's that are being built. One will be done a year before the 2nd. Start with a Conventional owner occupied 20% down then do a VA loan for the 2nd after the year. I have the funds to do the 20% down, but want to know any advice before I commit. Also, I have a full time job: would hiring a property management company be wise? 10%. Any feedback is much appreciated.

Thank you!

[Drew Sygit]

@Andrew Freed. 

Recommend considering doing VA on the first property. VA has VA Funding Fee, but doesn't charge monthly MIP or PMI.

After the year is up, you can determine if appreciation and interest rates make refinancing attractive to free up your VA eligibility for 2nd purchase.

If not, you can still do 5-20% down on a regular purchase loan.

FYI - don't forget to research what property tax & insurance changes will be caused by changing to rental property.

Regarding DIY or hiring PMC - BP is filled with DIY'ers who will recommend doing it yourself. You should carefully consider:

1) If you have the time to self-manage
2) If you're cut out to self-manage. Most owners are too soft and are their own worse enemies when something goes sideways.

If you decide to DIY, recommend at least taking a Fair Housing course, so you dont get charged with discrimination (ave settlement is over $50k)!