All Forum Posts by: Anthony Catoni

@Alexander Knowles

That's exactly what we are thinking of doing. The other property I purchase almost has to be a BRRRR in order for me to keep recycling funds and increase the speed at which I can acquire doors. You are 100% right though about new construction with the VA.

@Antonio Cucciniello

15k will mostly likely not get us 2 properties. The plan is to BRRRR a property with short-term money/some of my cash for 1 property and then purchase a new or newer home with the VA and we will live in that for the time being. If I can BRRRR the first property, then I will be able to recycle funds. I'm looking to network with hard money lenders and potential partners. The FHA is also in play, but the VA is a better deal.

@David Pere @Brandon W.

I actually like the debate. I can see the pros and cons of both. I do think based on the payment schedule you'll end up paying more with the FHA versus the VA. If the numbers still work with the FHA and I didn't have access to the VA I'd definitely use it. Have either of you used the FHA 203k? How does that work with a refinance? Just thinking but, if you bought a fixer upper, under valued, with that loan, fixed it up and re-appraised, would you still need PMI if it appraised higher (getting you to the 20% mark)? Or do you always have to have PMI on an FHA? If the answer is yes, I'd look at refinancing out.

@Alexander Szikla If you refinance your primary into FHA, how do you go about purchasing the second home using the VA and get around the occupancy requirement? If that could be figured out I can see it working out pretty nice.

@David Pere

I'm assuming you would suggest multi-family house hacking? 

I also meant to ask all of you if you've done long-distance investing? I just read Long-Distance Real Estate Investing by David Green. Because I will be moving overseas, that is going to be how I do things for the next 3 years or so. 

@Trevor Andersen @Tanner Sherman

@Tanner Sherman

Thank you for the info. Currently, I am trying to network with realtors to get on email lists. Would you recommend contacting wholesalers for multi-family or is that hard to come by? As for the loan, that's the part I've been struggling with. I will definitely be upside down for the first year with the VA fees, but long-term the ROI is high. It's just getting to that point. Ideally, BRRRR is where I'm trying to get to so I can increase the speed at which I can do deals. Also, the HELOC will be a nice tool to have.

@Trevor Anderson 

I appreciate all the insight. Everything you said is exactly where I'm at. Are you currently in Columbia?

Hi Everyone,

I am a new investor looking to make my first two purchases within the next year. I have 15k saved up now and I also have access to the VA loan. My wife and I are looking to invest in the Columbia, SC area as that's where we are stationed. We will be moving in October of 2021 on military orders (possibly overseas). I have spent the past 9 months or so educating myself on real estate and learning the rope and am now ready to take action. One of the properties will be purchased using the VA loan (hoping to land a multi-family). The other property is where I need some advice/help from those that have done it before.

I made a list of potential financing options for the second home (please add more if I'm missing something). We will be debt-free next month and have great credit scores. 

Here's the list:

• HELOC (not eligible, do not have a home with equity)
• Conventional Loan (would be tough to hit 20% down with 15k saved, still could do with PMI)
• VA Loan (ineligible if used with home 1, could refi out to conventional to make available)
• FHA Loan and 203k (3.5% down with PMI, occupancy requirement)
• Personal Line of Credit (credit unions I've called will lend up to $30k, but interest 12-18% depending on credit)
• Hard Money (short-term, down payment needed and interest will be high)
• Private funding (family and friends)
• Partnership

My options (in order of preference):

1. BRRRR SFH or multi-family
2. Buy a SFH or multi-family needing little to no work
3. Wait to build up more cash

I'd like to BRRRR the second property if possible, but I am finding interest rates to get short-term cash with no experience is killer, not to mention needing a significant down payment. In the refi stage, I'd like to cash-out refinance to get my money out and be able to do it again, possibly before we leave for our next location, but the seasoning period could be fatal with interest. How do you use short-term cash to fund these deals and factor in the holding costs? I'm guessing I haven't found the right lender(s) yet?

I can see how just getting started will you give you momentum, even with financing deals (cash-flow can be saved, HELOC will become available, experience, etc.).

Any and all advice on navigating through this would be great. It's not that I can't make this work, just need to figure out how.

Thanks,

@Darrin Carey I appreciate the info Darrin! Do you have any recommendations I could pass along or a resource where I can find them?

Hello Everyone,

I just went Pro about 2 months ago. I'm looking to purchase 2 small multi-family properties by this time next year. I'm currently based out of Columbia, SC. If you have any advice please let me know!

I am looking for recommendations for a plumber and electrician in the Dayton, OH area who is interested in and can do permitted work. A friend of mine, who has helped me get started in real estate has asked me to help him find these professionals. The current contractors he's contacted have only been interested in doing quick work (ie. outlet repairs, fans, changing toilets, etc.). He has a 32-door portfolio and his next project is in need of this work. I don't know much more than that, but would be glad to connect you.

I look forward to hearing from everyone!

Thanks,

Anthony