Military Investing

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Neil Seip
  • San Diego, CA
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How to Make a 0 down VA Loan Cash Roll

Neil Seip
  • San Diego, CA
Posted Jun 9 2022, 17:25

Hi!

First post on bigger pockets. I am trying to purchase a multi-unit in DFW area with a VA and 0 down. My issue is that it seems really hard to get this to cash roll at all. I'm ok with a little negative cash roll at first, seeing how little money is being invested. I am open to any tips or suggestions.

Thanks!

-Neil

Fort Worth, Texas

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Alex Breshears#1 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Hampton Roads, VA
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Alex Breshears#1 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Hampton Roads, VA
Replied Jun 10 2022, 10:26

Hi Neil! What you are likely experiencing is the fact the deal may be over-leveraged in order to make it cash flow. Many places if you are buying the property with little to no equity, and wanting to rent it out, the numbers just are not going to jive right now. Many places are also see record increases in property values, and in some places rents are not keeping pace. My suggestion is to either change the criteria of what you are looking for, or change how you are looking for properties. Potentially finding an off market deal that is willing to accept a VA loan might yield better numbers. Another option is making the other units shorter or medium term rentals, which may cash flow more than traditional long term rentals. The downside of that option is there will be some hefty capital requirements to fund the furniture, decor, and other items required because you are essentially furnishing a whole apartment for each unit you plan to use in that fashion. Personally, I would look for a home with a mother in law suite or maybe a detached garage that has an apartment above it. They will still be called SFH, but could easily accommodate a short term model. Make sure you understand the rules and regulations the city and/or county may impose to short term rentals though. My city they are illegal, so not an option at all for me.

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Neil Seip
  • San Diego, CA
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Neil Seip
  • San Diego, CA
Replied Jun 12 2022, 20:53

Hi Alex,

    Thanks!  DFW has very strict short term laws as well and they are about to get worse.  

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Collin Wallace
  • Homeowner
  • Joshua Tree, CA
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Collin Wallace
  • Homeowner
  • Joshua Tree, CA
Replied Jul 20 2022, 07:51
Quote from @Neil Seip:

Hi!

First post on bigger pockets. I am trying to purchase a multi-unit in DFW area with a VA and 0 down. My issue is that it seems really hard to get this to cash roll at all. I'm ok with a little negative cash roll at first, seeing how little money is being invested. I am open to any tips or suggestions.

Thanks!

-Neil


Hi Neil, See if you can find someone PCSing from DFW area if that is where you are stationed currently and buy their home using FSBO contract.