All Forum Posts by: Jacques Ridore

Also, I forgot to add that the loan being offered has a reset clause where at the end of the 5 years the loan automatically recalculate the mortgage at the then-current interest rate

Hello everyone,

I have an opportunity to purchase 2 duplexes (4 units) right next to each other in a very desirable location. I initially tried to purchase them using separate loans for my wife and I. Unfortunately the banking company w were going with (USAA) decided to not go through with both loans the day before we were initially scheduled to close on the properties. Their reasoning was that we wouldn't meet the VA occupancy requirements. Even though we agreed to live separately.

Fast forward a few days and we found a local loan officer with a local bank. We have secured on VA loan for one duplex and are in the process of securing a 20 year amortized loan that would balloon every 5 years. Also the seller ( who owns all 4 units) has agreed to carry back the 25% on one duplex, which we would have to pay off in 5 years.

My question to the forum is, are amortized balloon loans a good route to take in order to get into the real estate investment arena? Are there other avenues I should look into before going this route? 

After crunching the numbers, even occupying one of the 4 units, there will be slight cash flow, compounded by the fact that we will be able to save significantly more than we are now because each unit will cover a little over half the mortgage. 

Thank you in advance for any information you are willing to provide. 

 Thank you Stuart,

If I am able to transfer the new loan to my LLC, can I apply for another VA loan as soon s next year ?

Hello Bigger Pockets community,

I am Jacques Ridore, I usually go by Jay.  I am a new transplant to the real estate investor field. A little bit about me is that I am an active duty military member of just over 15 years. I have a BA in Business Admin, and an AAS in Construction Technology. My goals are to have a better retirement life through investment properties, more specifically small multi-unit properties.  

I started an LLC late last year and just recently placed an offer on 2 multi unit properties that got excepted. I took the route of both me and my wife getting separate a VA loans and purchasing properties that are close to each other, since we have to live in them for a year. I am excited and interested in growing my portfolio in the coming years but I am not sure of how to go about financing since we would have to supply a significantly higher down payment if we were to go traditional loan for an investment property.

I have so many questions as I embark on this journey. Can/should I transfer the title of the property to my LLC since I have a tax ID? If I transfer the title, will I qualify for another VA loan. Is there any way around having to live in the unit for a year?

Thank you in advance if you can help me with any of my questions.