NEW CONSTRUCTION READY MOVE IN BRRRR

3 Replies

Dear all, share your thoughts on this.

Simultaneously while flipping homes or involved in other investment vehicles.

If you have VA or Navy federal, you can do it with zero down and zero pmi , interest a little higher, but super low out of pocket since only closing cost is what you would pay. 12 months later do it again and move into your second new home with the same program. after 24 months, do it again, same program, by now you already had a full year of rents for House #1 where you can cash out refi , hold the property. Use that for closing cost on property #3, and so on with #4 then #5.

Navy asks how much you will be renting your primary for once it becomes a rental with a tenant to make sure the current mortgage gets taken care of. Navy will always service their loan, never be sold forward.

Caveat to your plan: Your entitlement on the second deal is not 100% if you don't sell the first house. VA loans are a wonderful benefit!

Thank you @Caroline Gerardo for your word. I apologize for my lack of knowledge, what are we referring to entitlement on the second deal? To be fair let me try to summarize my current position, maybe it can shed light to something I may be overlooking that you see along with your first response that may help me understand more.

This process below in approx. 14 months between each transaction.

House 1 Primary purchased 0%down/0%pmi (cash out refi)

House 2 new primary (house 1 rental) purchased 0%down/0%pmi

House 3 new primary (house 1, house 2 rental) purchased 0%down/0%pmi

House 4 new primary (house 1, house 2, house 3 rental) purchased 0%down/0%pmi (cash out refi on house 2)

You have a % amount of entitlement. If you don't sell houses along the way #3 and #4 will be at lower loan to value with larger down payments. House one 100% with zero down maybe leaves you let's guess 75% entitlement to buy house two with 25% down and hold both houses. You need to then refinance house one to conventional to get another VA loan ...