Rental Property Investor · Member since 2019 · 6 posts · 0 votes
Hello,
I am looking into getting a new investment property but I'm not sure which area. I know I can only buy up to 4-units and I have house hacked before so I am not afraid of that investment strategy. I don't know my buying power yet but I already have one house that's been rented out for a few years now. I currently am in NYC and I know I won't have enough buying power out here. Since I am 100%, I have the flexibility to move anywhere that make sense and can be approved by the VA inspection, which is one of the main factors.
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
2y
Jamiek,
VA is a great tool for home ownership and for making the move into REI since it offers 100% financing. Just keep in mind if you have a current VA loan it does take away from your Max loan amount based on the entitlement you have left over from the first. Most Veterans fail to refinance their home because it has a low rate.
My advice is do not let that stop you from refinancing and being able to free up 100% of your entitlement. The mortgage rate can always be refinanced when the rates drop back down which they are very close and will start to drop this year.
Best thing you can do to maximize your entitlement is to choose a 2-4 unit so you can have a higher county loan limit and you can use 75% of the other door as income to afford a higher purchase price.
I know in Texas if you have 100 percent disability you do not have to pay property tax. That is a pretty sweet deal, you do have to be a resident and it's only one property.
Investor · Carmel, IN · Member since 2024 · 55 posts · 22 votes
2y
@Jamiek Todd Congrats on your success thus far! As I'm sure you are aware, real estate is a hyper local game in which markets vary by the street. If you are open to moving close by your future investment property, I would start by deciding on states\regions that you are comfortable moving to.
This will narrow down potential locations for your investment. Some criteria to consider when evaluating a market are:
- school districts
-crime rate
- job/population growth
If the crime is low, schools are reputable, and job/population growth are steady/high, chances are you are looking in the right markets.
Real Estate Agent · Chattanooga Tn. · Member since 2024 · 46 posts · 15 votes
2y
Chattanooga is a great multi-family market, if this part of the country interest you, I'd be happy to answer any questions you may have about the area.