All Forum Posts by: Brooks Rembert

I think it's perfectly acceptable to charge more for month to month. I haven't run into this situation yet, but I think I would. 

We give a slight discount for multi-year leases, so why not a slight premium for month to month?

VA and traditional mortgage rates are not very different. You don't save much in the way of interest rate by going with a VA loan.

The spread will only be about 1% difference between a VA backed mortgage and an investment mortgage.

For a VA loan, you must live in the property for a time, about a year, before you can move out and rent it.

If at that time, you decide to refinance it, you will have to come up with at least 20% down for the refi because I assume you would be putting no money down on the VA loan and most banks won't refinance with no equity in the house.

If you have no money to put down now, can you come up with 20% in a year?

An alternative way is to buy a duplex, triplex or quad with your VA loan and live in one unit, rent the others, and in a year move out. Leave the VA loan in place and now you'll have four units that you are renting for essentlally $0 down.

Read everything you can here on BiggerPockets. Too many resources to count.

Never thought about this, but I guess it is a possibility to buy an Option on the property. Would it be similar to a Lease/Option like a SFH?

How amenable are MFH owners to this?

We don't refinance them, just change title to LLC.

Yes, presuming your ARV supports 75% equity after your rehab, most lenders will refinance the property.

15 to 20 years is usually the max I've seen comercial lenders go. And, most require 25% down for a commercial property.

Any chance you can partner up with someone to get the rest of the down payment?

In Virginia, we have to take the loan and title in our name, then after the deed is recorded (two or three weeks later) transfer title to the LLC for about $150.

A silly step, but MOST lenders we have spoken with won't let you take title in the LLC even with your personal guarantee on the loan.

We hold our properties in an LLC and have $2 million of umbrella insurance for just the reason described by @Dale Stevens