All Forum Posts by: Branden Cunningham

@Jennifer Maldonado

Thanks a ton, again, for all the insightful info. I think I have a pretty decent way forward now to check some of these options out. 

@Dave Foster

Thanks for the helpfull info

@Dan Call 
No worries, I would have if I had known more about real estate investing when I got the place, but unfortunately I did not. Still good comments though. I'll definitely be using my VA loan (when I free it up) on a 3 or 4 Plex next time around!

@Jennifer Maldonado
Thanks, lots of great info.

To answer your questions: Yes my end goal is cashflow. I will definitely take advantage of my VA loan when and if I can, but I know I'll have to use other methods of financing deals especially once I eventually get 4 or 5 places. And yes, planning on having buy and holds. Will also explore other venues as I gain more experience, but initially & while holding a relatively well paying full time job I want to strictly invest and not work in real estate.

I didn't even think of a lease option, I think it's a great alternative that could work for my situation and I think I could definitely make it cashflow if I do it right. I need to read up on rent to own. Not sure what the laws are (if any) with lease options and my VA loan. Have you ever had any experience with the VA loan or know if there are laws on this? I'm trying to find a real estate attorney to work with to help with these types of questions (and to ensure the lease/option comply with Massachusetts laws). 

I've thought about the 1031 up when I sell, just not sure its feasible with the VA loan. I've been trying to dig and see what the laws are on it, there don't seem to be any I can find right away, so it may be legal to 1031 up with my VA. The other problem would be that I'm at the max end of my VA loan, I think I'm only under about 10k-15k what the max loan amount is so that would add an additional challenge when finding a place to move up to (I'm also limited to a 4-unit max home with the VA loan.)

I always have a ton of questions haha, trying to learn as much as I can. I'll do my best to google out the easy ones, thanks for the offer I'm sure I'll have more for ya soon if you really don't mind!

@Brent Coombs
Makes sense, He's a good guy, he was really open with the whole process when we went through it so I'm sure he would have no problem working with me again and taking a reduced commission if needed. Would never hurt to ask anyway, if I decide to go that route.

Thanks for the info!

@Dan Call
I'm not sure if there is anyway I can force appreciation, just not sure the market will support it. I'm thinking of redoing the kitchen myself, but not sure if it will really bring a whole lot of appreciation since I bought the place pretty high as it is. 

Everything I've seen puts my place renting at 2400, I've seen some going for 2700 near by, but really I would need something like 3k a month to cash flow.

It's a single family (3B2B) house, so no units. 

Not sure if I could bring another investor... something to look into. Or a non-investor, someone to assume the loan so I don't pay closing costs maybe (not sure of the legalities) but it's a zero down loan at a great rate backed by the VA... maybe something a young family would be really into and if I remember correctly I don't think a person has to be military/gov to assume a VA loan... would have to research that.

I'm not necessarily breaking even... I'm just using my BAH up on my housing.. but when I move most likely it will be a cut in BAH since Mass/Boston is the second highest BAH for areas I'm eligible to go.

Thanks for the suggestions, I'll definitely look into someone assuming the loan as another alternative. 

@Patrick Wheeler
I wouldn't necessarily do a VA loan each time, I also don't think I'm going to go that route. I'd rather invest in a concentrated area in Michigan. Not worth the hassle (to me) try and manage properties (or property management companies) all across the US.

But yes, the VA backed loan caps at something just over 100k. They will back as much as 4x that amount, but won't back another loan if your over the 100k threshold I believe. 

And I'm thinking that's the best route, cutting my losses, trying to sell the house without losing money on closing costs. 

@Paul Donoghue 
With just my mortgage, insurance, and taxes are 2300 a month. I've seen houses similar to mine up for rent around 2700, but the rentometer is something like 2300-2400 high end, and zillow (for whatever its worth) is also saying 2400 a month rent. 

Even at 2700, I'll be breaking even without accounting for capx. 

Hi All, I'm in the military, at my first assignment. As a lot of mil folks have probably heard, I got the advice/idea given to me to start purchasing a house at each duty assignment. So I went and purchased a home to live in & rent rooms out while I live there, to eventually rent the place out after I move. The idea was simple enough, so I thought, and I got myself a house with a zero down VA loan. I had no clue about real cash flow on a property, about capital expenditures, etc. etc. had never heard of bigger pockets, my only resource was a local real estate agent I was working with who knew about VA loans. You don't know what you don't know, so as you can guess, I now have a nice relatively expensive house in Massachusetts that will negative cash flow when I leave.... unless I can somehow get someone to overpay (obviously not wanting to do that to someone) It was move in/rentable condition when I bought it, fresh paint and all. So I paid top dollar for it (it's a sellers market here in Mass/Greater Boston area) I think I made about 50 offers on places that were below or at asking price, some even over, and hardly got a 'best and final' request back; they were all getting over asking price. So I ended up paying over asking price for this place just to get a house out here. Currently I'm not necessarily losing money on it since I'm living there. I'm just not sure what to do when I leave in the next year and a half. I will have very little equity in the place by time I leave so I will lose money on the sale. (If I speculate, the price of the house is estimated to go up 2% by next year so I may be able to come close to breaking even on a sale, but again only on speculation so I'm not counting on it) I should be able to rent it out and break even if I manage the place myself. I know I don't want to invest in Massachusetts long term. I want to invest back in my home state of Michigan. As for my general goal in real estate I do want to have multiple buy and holds. Do I take the loss now and get out when I move next year, or hold onto it and let the equity build so I (hopefully) don't lose money on the sale in a few years? Or are there better options I'm not considering, like holding onto it for longer? On a positive note, getting this house really got me into real estate, investing, and changing my mindset on money (thanks to Rich Dad, Poor Dad) Any advice would be truly appreciated! -Branden

Would love to attend the next meet up in October. Can I get put on the distro?