I want to but im stuck. What to do?

Question

Hello, my name is Matt, and I'm feeling stuck!

Long story short, I own my house and am waiting for my neighbor's mortgage company to fix their deed of trust so I can take out a cash-out refinance. Hopefully in the next 6 months...

My primary house is valued at $215k, allowing me to take out 80% which is $172k. Rentometer estimates I would only get $1300 monthly. After learning how to scan for foreclosures and understand bidding, I'm roughly thinking I'd need at least $140k to be in a good position to buy. I'm unsure what to do. I have a 2b2b property making $200 in monthly cash flow, and I don't think a refi on it would be worth it.

My problem is I may be moving within the next year due to my military status. If anyone can offer some good pointers or steer me in the right direction, that would be amazing!

David Krulac · Answer

@Matthew Strack  We've had dealing with other military people.  some have started their investor career on the back of changing a personal residence into a rental, when their is a duty station change.  Some have collected a rental at every duty station, ending up with a nice portfolio when retiring. One active duty person, I know bought a new built personal residence in 2021, got a VA 100% financed mortgage fixed for 30 years at 2.00% interest.  When transferred at two year rotation, they kept the house and rented it out. And moved another state and bought another personal residence.  We managed a former residence turned into a rental for an active duty member transferred from PA to CA.  Easy to do with a good property manager.

Matthew Strack · Answer

@Jaron Walling that's good info from you @Henry Lazerow . I would say pulling 65% is something I know i can do!

@bo

@Bo Smith thanks for the support believe its been blood, sweat, and tears. I do have to wait on this mortgage company no matter what. Sit back and build, and wait. Got it.

@Anthony L Amos Jr man I didn even think of a HELOC I would make things financially easier for a little while.

So more about the military. I will always stay in the same state. So I would not be to far from my rentals. I use rentredi which makes landlording a lot easier. Im a construction engineer so I have been doing all repairs myself.  I enjoy it but im not trying to do that for the rest of my life. Plus I have a family and the uncertainty of the military.  I guess it just sucks to know you are in arms reach of what could change your life but you can't get it right now because you are waiting on someone else.

Henry Lazerow · Answer

Make sure you are still cash flow positive if pull equity or you can get yourself in a dangerous situation. Thats the biggest problem in 2026 and the BRRR pull equity strategies of the last decade mainly no longer work.

Travis Timmons · Answer

@Jimmy Lieu What are you doing? Stop spamming these forums with the exact same copy/paste message.

@Moderators

Jaron Walling · Answer

@Matthew Strack There's a time and place for REI. If you're young you have plenty of time. Why would a neighbors actions have any influence on your decisions to pull equity? To hold rental properties?

What percentage is the chance you will be moving for the military? My brother-in-law's family were in a similar situation 2 years ago. They sold a property they bought in 2018, captured a lot of equity, paid no taxes on the gain (primary residence exclusion), and got stationed in Germany. Unless you have a plan for PM, strong conservative CF, and reserves (call it $10k cash) I'd plan on selling if you need to relocate.

Owning rentals from OOS can be a nightmare if you're not prepared. That's half the reason my brother-in-law sold. They had no experience with rentals, didn't run the numbers, and had no contacts with PM companies to make long distance land lording a reality. You could be the opposite if you lay the foundation correctly.

Henry Lazerow · Answer

I wouldn’t. Maybe pull less though and do a smaller 2nd project could work better.

Austin Steed · Answer

With David here. VA is a great loan that you can then rent out once you've lived in it. A change of orders I would think is a great reason if you have to move a little early too, they're called orders for a reason. I used my VA loan multiple times in Lemoore CA once and twice in Columbus OH.

Jaron Walling · Answer

@Matthew Strack If your current property appraised for $215k a 65% LTV (quite safe in this market) is a loan of $139,750. That's a fantastic position to be in. It should be more CF generated per month.

We have cash-out refinanced two properties at 65% for the exact same reason @Henry Lazerow talked about. You need CF, reserves, and margin for a safety net. If you pull 75-80% most properties in this market will not CF especially if you're not doing a BRRRR deal.

Matthew Strack · Answer

@Jaron Walling.

Thanks for the information.  So when I tried the first time to pull equity I found out that I had land issues.  My neighbors house (property line) were sitting over my house. I paid 6k for surveying and year and half later we are still waiting for corrections.  The only thing I was told that is holding it up is the neighbors deed of trust because it still shows the old property lines.

so my situation is a little different. I am active guard so I move within the state. So at max im only 4 to 5 hours away from that house if I was to get moved.

now i could go and purchase a new property but i feel as that would limit my growth in rental properties later.

Matthew Strack · Answer

@Ryan Thomson I understand.  So how do I see that assumable inventory? Does MLS show information like that? Also the house is paid off so I have no loan. To my understanding I can't take a va heloc unless I had a mortgage.

I want to but im stuck. What to do?

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