VA Loan For Multi-Family in San Antonio
Hello,
I'm working on getting started in real estate investing by using my VA loan to buy a multi-family or single family property for rental income. My home town of NYC is an investing disaster in my price range so I am looking at San Antonio. I really like the price-to-rent ratio here and, more importantly, I will be living and working in SA and can easily make time to manage the process.
I would love to connect with anyone who has experience using a VA loan for duplex, triplex, etc. properties in the area. I'd be grateful for feedback on investing in the various neighborhoods, as well. Lastly, I'm new in town and always up to networking and building friendships with people who are ambitious and have a vision. :)
All best,
Marco
@Marco R. Sounds great man I'm glad to hear you are looking into REI! You will find SA is much more affordable than NYC lol. However I would suggest really taking the time to drive around town and get to know the neighborhoods. You really need to understand the market, prices, path of progress etc or I fear you may pay too much for a property. Don't get so excited to get a deal that you ignore the numbers and red flags that show up! Go to real estate meet ups that aren't huge pitch fests where you have to pay to attend. You will meet people there and just tell them what you are after and ask them about the market and their experience. The plex's here in San Antonio are usually in the rougher parts of town, but you can find some decent ones in solid C class areas. Go through the bigger pockets page and search all the people with profiles on here from San Antonio and reach out to them and ask them if you can take them to lunch, or for their advice on what to do. I wish you the best of luck brother and I'm always here if you have any questions or need help.
@Michael Guzik Thanks a ton for the advice! I will do that. I actually enjoy exploring neighborhoods, plus it's a good way to get to know the town. I'll be sure to reach out.
And keep an eye on property taxes in SA. They can run pretty high relative to other states/cities. Example SFH I own is worth ~$345k and property taxes run $8500/yr. Here in Florida, own a home worth $600k and property taxes are $7.5k/yr.
Hi Marco,
I'm in the exact same shoe with starting out in real estate and is interested in using the VA loan for a multi family property. I'm just been listening to the podcast and doing all the research I can before putting my foot in the water. PM me and I would love to connect and we can exchange some knowledge.
-Tan
Originally posted by @Matt Humps:
And keep an eye on property taxes in SA. They can run pretty high relative to other states/cities. Example SFH I own is worth ~$345k and property taxes run $8500/yr. Here in Florida, own a home worth $600k and property taxes are $7.5k/yr.
Thank you, Matt. Good call. I will pay attention to that.
Originally posted by @Tan Le:
Hi Marco,
I'm in the exact same shoe with starting out in real estate and is interested in using the VA loan for a multi family property. I'm just been listening to the podcast and doing all the research I can before putting my foot in the water. PM me and I would love to connect and we can exchange some knowledge.
-Tan
Definitely. All about joining forces. Thanks for reaching out.
@Marco R. I like SA, and I visited a couple of times.
I think you should push for a fourplex, and yes, I know it might sound a little big for a first deal, but I know you'll do just fine.
Great market to invest in. Goodluck. Thanks! - Ola
Thank you Ola for the encouragement. I don’t want to over-leverage but if there’s a fourplex out there whose numbers make sense I’ll go for it. Is that how you started?
@Marco R. @Tan Leundefined
I am returning from overseas soon and looking to do the exact same thing in San Antonio when I get stateside. So far it's been challenging to find deals with the VA loan because I'm putting 0% down and I wont have that much liquid. Do have any tips or experience to share? I'd love to hear how it has worked out for you both!
Its difficult to find "deals" with the VA loan because it requires you purchase a home imwhich meets minimum property requirements (MPRs). Most deals that are easy to find are distressed properties that cant be approved for a conventional loan let alone a VA.
The nice thing about the VA loan is you can get in at 0 down and request up to 4% in seller paid assistance. This means you can literally get in with 0% or very nearly 0% out of pocket.
Think of it this way: are you currently paying rent? What is the total opportunity cost of continuing to pay rent while you search for the best deal? Might it not be a better choice to find a place that works and allows you to put away more money per month by combining income from tenants and what you would have paid in rent minus expenses. Every month you will earn excess money because you have made the choice to purchase and rent out a multiunit. That extra savings can be put away to build the liquid capital necessary to purchase a really good deal because cash gets you more options.
Sometimes its useful to think about a deal in terms of its opportunity cost. Especially with a VA loan.