All Forum Posts by: David Lilley

Try Berkshire Hathaway GUARD. 

@Corey Collins 484,350 is your max entitlement. Subtract whatever your loan amount was for current home from that and that is what you have remaining. If you buy something over that amount then you have to put down 25% of the excess. 

Option 2) Depending on how much equity you have in your home it might be worth it to sell. If you have lived in it at least two years then any gain up to 500k (if married) is tax-free. 

Option 3) Refi to a conventional loan. If you do this you will have to use your ONE TIME benefit of restoring your entitlement since you still own the home. After doing this you would have to sell all your properties to use your VA benefits again.

Always secure a primary residence first. Any returns you might see from a multi will be completely lost by renting. The best move is to house-hack.

Rule #1 never buy in the hood! Well, almost never.

Value for properties with 5 or more units will be determined by the net income and capitalization rate. Caps rates will vary by submarket, asset class, and stabilized versus value-add asset.

Value for properties under 5 units will be determined by the comps. As you said, this can be difficult to estimate. I would cultivate your relationship with the lender you plan to do business with. Tell them your plan for the property and find out what ARV they would estimate.

@Rafick Assenjee Yes, this is a great strategy for apartments. This can be done with a bridge loan product. These loans are interest only and typically cover your renovation budget too.

We are over halfway through with this strategy on a 16 unit in Arizona. Once rents have stabilized we will refinance into permanent debt and cash out a sizable amount of our initial investment.

@Account Closed as long as your investors are partners in the deal and not just passive investors then you do not need to file an exemption.

@Robert C. We need to remember there has always been automation. Jobs will be automated out, but new jobs we would never have fathomed will be created. Won't be the first time; won't be the last time.

This is a pipe dream and will never happen. We are talking adding 2 trillion to the budget.

@Russ Scheider Great info, Russ! Thank you for sharing!