All Forum Posts by: Daniel Lehman

Ugh. I am getting out of CA rentals. I have a tenant who hasn't paid for 4 months, and turned off the water to the landscaping so I am getting HOA violations too. I have a buyer who intends to owner occupy, and that is the way we are trying to get the tenant out currently - we shall see if it works. I got into escrow before this new stuff started, so we will see if I am grandfathered, or anything. But I am selling in CA and buying out of state. Screw this mess.

Amazing man.  Congrats dude.  Amazing job.  

.7% is way off...   1.2% is close probably. 

Two ways to go about it - use 1.25% as a general rule, AS LONG AS there is no mello roos.  Be careful of Mello Roos in areas with new infrastructure/schools, etc.  Temecula, Murrieta, Eastlake, Del Sur, 4S Ranch, San Elijo, etc...   

If you REALLY want to figure out the right tax rate - look up the CURRENT property tax amount (on Zillow, or whatever) and divide it into the CURRENT property tax assessed value.  That will give you a percentage that you can use to multiply by your prospective new purchase price and you'll be about there. 

Good luck! 

Yes, buddy!  Congrats man. 

Hey Andy, you got it just about right.  Here are the rules broken down independently... 

a) Your VA Eligibility is like a rechargeable battery. If you use a portion and have some remaining, you can use that remaining amount based on the new county where you are buying. If you use all of it, you can restore it ONCE with a refinance, and an unlimited amount of times if you sell.

b) The only thing that changed in 2020 was that IF YOU HAVE 100% of your eligibility remaining - you have no loan limit cap. So, we've done 2.5 million dollar VA purchases with zero down at 2.5% interest. Crazy. But that is only if you have 100% of your eligibility remaining (even if it has been restored to 100%). If you have eligibility tied up - you are limited to the county loan limit caps. In other words - it reverts back to the old system pre-2020.

So I think fundamentally, yes, you are right about all.  I just wanted to lay them out as easily as possible so you can apply those concepts to whatever options you have at your disposal.  But fundamentally you are on point, I think. 

Good luck man!  Good plan! 

Hey Ramon, 

Congrats man. I bought my first place in San Diego in 2004 - took a huge dive, but held on for dear life, and now we have a VA loan on our Carlsbad home that we purchased for 960, and is probably worth around 1.5MM.

Have you looked at house hacking? Buying a condo you have HOA, condo approval requirements, etc. BUT - if you buy a duplex, triplex, or fourplex, you can live in one, rent out the others AND use that income to qualify. Could be really great for you? No HOA, no condo approval, etc.

I am a lender in Carlsbad, I'm a Marine Veteran, and my whole staff is military spouses/veterans. We specialize in VA if you want to reach out and talk through it. We can work your numbers, OR I also have resources to get condos VA approved. It takes time and money, so it's not ideal, but those are two options. I personally would go the house hacking route. VA has no loan limits now, so you can go up to whatever purchase price you qualify for, and there is no loan limit cap.

Let me know how I can help out! 

Daniel

Hey Corey, 

The only time a non spouse (not even family member) can go on the VA loan is

a) If it is a VERY well documented spouse-like relationship - like a domestic partner or fiancee, etc.  AND 
b) VA has to pre-approve it, so it's hard logistically to stay within timelines, AND
c) Even if it is approved, only half of the guarantee will apply, so you will still need 12.5% down. 

Once you get around to getting all of that working, it almost makes sense just to try to go FHA or conventional anyways. So if the veteran can't qualify on their own (you should try that first) it's really hard to do. If the Veteran DOES qualify on their own - adding income to the file will only qualify them for more, not improve the terms, so sometimes people think more is better and it isn't always.

About the transfer to an LLC - just be careful of the lenders "due on sale clause" which could call the loan due if you transfer the property. Also realize that you probably still will have the loan attached to the person who signed, so I am just not sure how much benefit you'd get? I'm not saying there isn't any - just saying check it out before you go through the hassle.

Good luck! 

D

@Farheen Naveed unless all borrowers are also veterans, or his spouse - they can’t go on the loan. If his income qualifies (including income from non occupied units in a house hack) you can use gift funds for down payment, you can help pay the loan, but you can’t go on the loan to help qualify.

You have 150K in 1031 Funds. What do you do? Strategies? Opportunities? Go!

@Benjamin Z. Pickens if you transfer title without paying the loan off you may be subject to a due on sale clause. VA home loans are assumable. You could use that option maybe? For them or others. But that will keep your VA loan tied up until they sell or refinance (pay off).