Buying Property In The Military With a VA Loan.

Buying Property In The Military With a VA Loan.

Member since 2020 · 4 posts · 0 votes

Like I stated I have purchased a house (condo) while in the military. I am getting out in 7 months and I'm not sure if I should sell or keep it for value. Any advice is appreciated. 

The numbers are as follows. I purchased the house for $185000 with $0 down due to it being a VA loan and all the closing costs were covered. However i just refinanced (before really looking into real estate at all) and got a loan for $183000 reducing the interest rate by 1.75% to 3.5%. Again 0 out of pocket because USAA (who I went through for the loan) covered all the expenses. Total cash flow comes out to negative $200 with the estimated rent off of zillow. That being said though the estimated value of the condo is around $210000 and is projected to keep rising. This was confirmed when I got it appraised for the refinance. At this point I'm just not sure if its worth it to keep it or not.

I attached an analysis I made using the calculator for rental properties.
https://www.biggerpockets.com/analysis/rentals/d7d51b77-7364-4c3c-ad6c-bd8008c56d70

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  • Realtor · Chicago, IL · Member since 2019 · 222 posts · 153 votes
    6y

    Here is what you should consider:

    Can you sell, buy a new property and cash flow better using your VA entitlement on a different property? Your net worth return on investment will be positive because your equity pay down plus appreciation and tax savings will be far greater than the -$200 cash flow but you still don't want to be negative cash flow if you can find a better property. Where is the current property and where will you be moving? Feel free to message me.

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