All Forum Posts by: Han Oo

Hi BP members, Currently, I am trying to get tenant for my rental unit and going to manage myself. My question is can I get the copy of the applicants' photo IDs for screening purpose? If I can get, can I just take photo with my phone? Do I need to get all the occupants or only those who are 18 and above? My property is located in Norfolk, VA. Thank you in advance. V/r Han

Carlos Guerrero Yes, as far as I understand, your 2nd unit has to be bigger or more bedrooms. The idea is you are moving up or upgrading. You cannot downgrade your type of residency. The good thing about duplex/triplex/fourplex is they look at your living space which is one side of the house that you are living, not the ones that you are renting out. However, please check with a few lenders such as Navy Federal, USAA, etc and VA first before you do anything.

Carlos, Welcome to BP. I'm in military as well. I think you should use VA and do house hacking with duplex. Do you know you can buy 2 properties with VA loan? 2nd has to be bigger one as in more bed rooms or bigger sqft. The reason that I chose VA is you don't need to pay down payment. But you cannot buy distress house as VA won't approve it. So, buy duplex with VA. Live in one side and rent another one. Save your BAH for next purchase and some repair. After 6 months to 1 year, find bigger one and move in. That's the VA requirement. Then rent out another side of the duplex.

@Adam Sanders Thank you for your response. Sorry for my late response back. 

I would like to go traditional financing but my debt to income ratio is high and I won't be able to get the amount that I would like to get. That's why I am thinking of going with hard money and refinancing after a few years if I use that particular loan product which is from lima one capital. My main concern and the scariest thing would be not able to refinance to repay my loan. I know I can sell as my final exit strategy but I would like to keep it for long term. 

My strategy is holding long term for cash flow. Then, refinance to go for bigger multifamily or apartment. So, I am not sure increasing value for multifamily in 2 to 3 years is doable or not because I have heard that multifamily is harder to increase value compare to single family. 

So, what do you think? Is that doable?

Patti Robertson Thank you. I closed the one in south Norfolk. The one that I told you about. It's 3br 1.5 bath, 5 mins to BAE ship yard. Appreciate your help. 🙏

Hi BP members,

I would like to ask regarding with financing for multifamily. I am looking for multifamily especially fourplex and I came across with one lender which is offering 2+1 rental hard money loan. I would like to do BRRRR with multifamily like Brandon Turner did in one of his video. So, below will be the hypothetical calculation and please kindly guide me and give me your feedback. I am very appreciated. The reason that I chose this 2+1 rental loan is balloon payment but it has 2 years with 1 year extension. If I go through the regular fix and flip loan, the max time is about 12 months term only. So, I would like to play safe with 2 years to 3 years before I go to refinance with conventional loan.

E.g I buy the fourplex at $200,000 and financing with 2+1 rental loan. My interest is 8.1% and my down payment is 25%. So, I have to pay $50,000 down payment plus closing cost and other loan fees and my monthly interest only payment is $1,012 per month. My gross rent is $650 each, so I am getting $2,600 per month. During the 2 years period, I make sure to increase rent, reduce the expense and fix up here and there to add value. So, during my third year, I go and refinance with conventional loan and new appraise value is $250,000. I cash out $175,00 which is 70% of the new value. So, I pay back $150,000 to my lender and I recoup 50% of my initial investment. 

1. Is that feasible idea? Has anyone done like that before? 

2. Is that easy to refinance up to 70% ARV for multifamily?

3. What if I can't refinance, what could I do? I understand that multifamily will be harder to sell compare to single family house. 

4. Should I go with regular fix and flip hard money loan to save 5% to 10% on my down payment? 

5. Should I try owner financing instead of lender?

Thank you so much all of you in advance. 

V/r

Han

Hi BP members, I am in Navy and new investor from Norfolk VA. I just closed my very first rental 2 days ago and doing some cosmetic repair. I am going to do my accounting and book keeping by myself. Actually, my wife will be doing since she was an accountant until I stationed here. So, I am thinking about what if I would like to provide book keeping service for investor like you guys, would you be interested? Please let me know what do you think? Thank you. V/r Han

Way to go. I understand that feeling and I was in that situation regarding with spouse and wasn't succeed. I'm in Navy too and VA loan could be hard to do BRRRR due to the condition of the house. So, I end up buying ready to move in with retail price. If I still have the chance, I would buy duplex and do house hacking. Now I am trying to do flipping or BRRRR with hard money. I am closing my first rental Fannie Mae loan which will pay for acquisition and rehab cost, 15% down only. However, buying duplex with VA loan is ideal for us.

Pls send the info to [email protected] Thank you.

Hi all, I would like to ask about refinancing from BRRRR. Hypothetically, I buy the house at 50k. I rehab for 20k. So, I put 70k cash in this house. Now new valuation (ARV) becomes 100k. So, when I go and refinance and refinancing is 70% LTV or ARV. (Is LTV and ARV the same?). I should get back my 70k cash that I put down initially, right? That's how I understand. So, now when I ask the lender about the refinance, they said I can only get 25% of the new value and I need to keep 75% of the equity in the house.So, is that because of that particular lender or is that usual situation with the lenders? Does anyone has done that 70% cash out refinance before? May I know which lender do you use or how did you do that? Thank you so much. Respectfully, Han