All Forum Posts by: Anthony Hidalgo

@Anthony Hidalgo I'm not any kind of expert but we are also an active duty family that uses the VA loan and what you are saying to keep would be the same thought process I would have, particularly since you think you may return.

Sure as an "investment" the house is a "loser" but buying homes with a VA loan while on active duty is a weird hybrid of business and personal due to the way BAH and personal needs intersect, so I don't hold it to the same stringent standard. You know for sure you would lose 30-40k if you sold now, versus the possibility of losing the same or less based on razor thin margins due to renting. Anyway, nothing to add but I get where you're coming from.

Do the numbers work any better as a short-term rental?

Is it possible to refinance the current home into a conventional loan? This could free up your VA entitlement and allow you to use it on the next property.

Also, have you considered a mid-term rent model?  You will have to provide furnishings but it would help your cashflow for now.  And you wouldnt have to move everything! 😄

As you know, the Springs has a lot of transient tenants due to the 5 military bases in the area so I'm sure you could keep it occupied with your current connections.  I wish you the best, thank you for your service and feel free to reach out if you ever need anything! 

Take care,

@Anthony Hidalgo

There's some really good advice on this thread, highlighting both the pros and cons of selling vs. renting.

You mentioned as one of your considerations that your VA home loan is tied up in your current home. When you PCS to San Antonio you may be able to utilize your VA loan bonus entitlement (2nd tier entitlement) to purchase a home in San Antonio with your remaining VA loan entitlement without having to sell or refinance your current home in Colorado Springs.

Bonus entitlement is based upon the FHFA Conforming Loan Limits, and these limits have increased exponentially the past couple years due to the appreciating housing market. As I glance at your current mortgage amount and factor in the average home prices in San Antonio, you may be able to utilize your VA loan again to purchase in SATX.

I'm a military veteran and lender here in San Antonio...happy to be a resource for you if you make the transition to San Antonio.

You can have more than one VA loan- there's a total entitlement of around $750k- so you could theoretically have two VA loans with balances around $375k, so don't let that factor in to your decision unless you don't have room in your entitlement. Heck, even if you do, there are plenty of great options out there with conventional owner occupy mortgages.

The simple answer- if you can keep a property, you should. Looks like rents are really close to covering your mortgage and along with write offs and depreciation, you'd likely be making money. As you also know- a market like Colorado Springs is going to be an excellent long term appreciating market, so over time, this property would transform from a sort of not awesome investment to an amazing source of equity and wealth for you and your family. The best investments aren't going to be great for the first few years- it's like anything else, you have to get in your reps before you reap the rewards. 

From what you've posted here, I'd keep it and deal with a couple years of breaking even in order to get to the point where it's starts performing really well and you have a ton of equity. 

Finally- could you STR it? That might be a better option, but I don't know what regs there are in CS.

Best of luck!

Hello, IMO I think there are at least two ways you can look at this problem. One is by the investor strategy (which, though I have done well for myself with real estate am not a huge expert or claim to be, and just now starting with multifamily investing) and the other is looking at it through as a longer term investment strategy.

Investor strategy states it doesn't make sense to rent just like Nathan mentioned above, as it doesn't leave room for bad tenants and vacancies, damage by tenants ect. You can negate most of this by proper selection of tenants and a great lease, but there are NO guarantees in renting real estate. 

My strategy and if I were in your shoes, and I wanted to return to the area, I would rent, even if I am not making any CCR and as long as the payments were made. It does mean you have to dip into savings, but I look at it as a 20-30 year return on my investment and still better than the stock market as far as returns. If the house is well maintained and not in need of any large repairs like roof, hvac system, ect I would hold. If not you may have to work extra hours to make up for the difference which is a sacrifice.

I personally, sold out of a market which I loved the location, now wish I would have held on as I am priced out of it completely at this moment. Maybe not in the future, but for now. 

You can simply use a different loan product for your next house. VA loans are great if you don't have any money for down, and you save the PMI, but if you do have down money, there may be other programs available. For instance, did you know in rural part of Kentucky there are USDA loans that are little to no money down programs? Get with a couple lenders to identify if this is an option for you. You may get some other avenues opened up.

We are looking at a PCS soon to New Jersey and wow that is a difficult market to break into as well. Hope your PCS is smooth as silk.

Best of luck and Happy New Year!