Need help on managing this situation.
Hi BP family,
I have a situation that I would like some opinions on. I am starting out as an investor this year and I want to get into flipping. I'm a little strapped for cash, but now I just found out that I can get what is called a second tier VA loan. Which will only be about $154,000. I currently have a VA loan on my house. I wouldn't mind starting off with a cash flowing property to get my feet wet, then sell it afterwards, so I can start accumulating some cash for flipping. Any suggestions with this type of situation? Any strategic moves I can make to make a profitable outcome? I have a year to use my funds
You can only use VA if you are going to owner occupy the property. So, if your new purchase is smaller, in a worse area, etc, you may have a hard time justifying owner occupancy. HOWEVER, another option (Depending on what your current home situation is) would be to REFINANCE your current VA loan into a conventional, which would re-charge your VA eligibility to 100%. Then you could go and buy a new property up to the county loan limit with zero down. Make sense?
Daniel
are you can find a seller willing to lease option with sublet rights then find a good tenant buyer and git a deposit from him.just a thought
