Bought a duplex...now what?

Question

Hello BP community!

My wife and I recently bought a duplex in Sandy OR and are going to 'house-hack' for the next year until we can once again purchase another multi-family home. Currently, our duplex will not be cash-flowing, but will be cheaper than where we were originally renting in Oregon City. This is not the most ideal deal, but once we are able to move out, it will begin to cash-flow. Also, we purchased this with a FHA loan and since we will not be saving as much as we would like, use my VA loan 100% financing on our next property. The question I have for the community is:

What to do while waiting to buy another property?

I frequent real estate website listings, listen to podcasts, webinars, reading books off of Brandon Turner's book list and am ready to dive right back in! Knowing that I have to wait six months to a year to be able to buy our next property with my VA loan is driving me crazy!!!! What do other BP members do while 'in-between' deals?

Thank you for your advice!

Chris Mason · Answer

Well, most people don't have access to VA financing, so most people would be saving up a down payment and/or making equity improvements to the property for a cash out refinance. You're going to run out of low down payment options eventually, assuming your family can't sustain a nomadic lifestyle indefinitely, no reason not to start saving up and planning for that now.

Chris Parrish · Answer

@Aaron Ikemoto, congrats on the duplex man! I would look for ways to increase your income. This is the most obvious way to increase your time frame for another down payment. Work extra hours, pick up a second job, switch jobs, etc. Besides education, that is probably the most important things to do while your waiting for you one-year financing period to pass.

Aaron I. · Answer

@Chris Mason:

I completely agree. We are trying to trim our budget where we can save more money for investments. We plan to try to acquire 3-4 properties in the next 6 years before we can buy our primary residence. I guess this is the time to force appreciation like you suggested and go the BRRRR strategy route in conjunction with our original plan. Thank you for your advice!