All Forum Posts by: Adrienne Green

Everyone I've spoken to who's bought a property that came with tenants regretted it. You've been given great advice here- get the tenants out as a condition of the sale. That'll be the easiest way to do it.

Hi @Robert Stamper! Like you, I wish I was given advice about REI when I first bought a house.

Re: #1: Can they qualify for a conventional mortgage instead of an FHA? My go-to lender tries to get FTHs into conventional mortgages if their credit is good enough because then the PMI will drop off at 80% LTV instead of staying on for the life of the loan, like it will with FHA.

Normally the PMI issue is a non-issue because FTHs will sell or refinance prior to hitting 80% LTV, but if they're planning on keeping it as an investment, and with interest rates so low right now, they may keep the loan for a long time.

There are conventional loan programs for FTHs that allow purchase with 3.5% or 5% down, depends on what program they qualify for based on their credit.

Re: #2: I am not a lender, but from my personal experience I would expect 10% down to be an option, at least for their second home purchase.

I'd recommend finding a solid lender in your area, and run these questions by him/her. Where are you located? I have a great lender for the mid-Atlantic region. Reach out if that would help you!

@Account Closed You're right the change in the VA rules allowing more than one home purchase definitely changes the equation there. It may be a good choice for you now. The thing is you don't have to do this evaluation and make this choice alone, and you certainly don't have to make it right now! A good lender will show you all the loan options available to you, with the numbers, so you can decide which is best for you. I'll PM you details about my go-to lender.

Real estate agents cannot recommend certain neighborhoods due to fair housing laws, and honestly everyone has their own criteria, so what's a good neighborhood for one person isn't for another one. My last house hacking client ended up in Manassas, and I am seeing a lot of first time homebuyers look in that area as it's more affordable than Fairfax County. So that may be an area to consider.

Hey @Jared Rohlfs! Yeah, the rules don't work here! But I've still found deals that yield good returns, and are well worth my time and money. 

In terms of finding the best deals, the truth is most properties for sale don't make a good investment. It's normal to walk away from most after running the numbers. But once you find a niche that works well for you and your situation, it'll be easier to find more deals that meet those parameters. For example, a niche that works well for me is condos in Leesburg. This works well for me: close to my house, less time and money than a townhouse or SFH, and I can still cashflow with the condo fees. But for some others, there may be more money in a different niche!

Hey @Account Closed! Welcome to BP, and great post explaining your situation! I love house hacking as a strategy in NOVA. There aren't really multi family options here, but renting out rooms or getting a place with an ADU tends to work well.

Stephanie makes a good point that there should be great FTH loan programs available for you. If you plan on really getting into real estate investing, you may want to use one of those, and keep the VA loan for your next purchase. Of course the loan programs are constantly changing, so what's best for you will depend on the rules when you go to buy, and your specific situation.

In this area real estate agents should be decently experienced with VA loans. We have so many veterans in the area, I know I've worked with VA buyers a lot! One thing to keep in mind is that in competitive buying scenarios, like where there are multiple offers, it can be challenging to win with a VA loan. The VA loan protects the buyer a bit more, so sellers sometimes have a preference for other loan products. I'm not saying it's right, but it happens. That may be another reason to go with a FTH loan.

What other questions do you have we can help with?

Hi Shawn! I've seen a lot of fix and flips hitting the market in Manassas, and I imagine it'd be a great place to BRRR. I haven't worked with renters in that area, so I can't speak to that aspect.

As Fairfax and Loudoun counties house prices have increased, I'm seeing a lot of first-time home buyers looking at Manassas. These are young working professionals, and I'd say Manassas is gentrifying.

In regards to specific areas of Manassas, you'll get a good idea by driving around. There's some new construction going up in the southwest part of town, near 234, and that may be a good area to BRRR the older houses nearby.

Hi @Josh Stoddard! You're smart to use this time learning from others. I'll send you a message to connect, and see if my network can help you.

@Chinmay J. and @Muoki Musau I'll PM you both details right now!

Thanks for sharing, George!

Hi @Jack N.! Your three options are all feasible here. Like Russell said, 203k loan would be tough to do in the current market. 

The first option of house hacking would likely be the easiest to get off the ground. You could do it with any type of housing, not just the townhouse situation you detailed. But I think it'd work fine in that scenario. Note that there are local ordinances limiting the number of unrelated people who can live in a house, usually to 4. Stay at 4 or under inhabitants and you should be fine.

Regarding your Choice 2, expect competition for those homes. As far as auctions on the courthouse steps, those are typically cash buys. So you'll need cash or a pre-existing line of credit from elsewhere.

Regarding your 3rd option, again expect competition, but that doesn't mean it's not worth doing. If she's already mailing this neighborhood, it can't hurt to include this in the marketing.