All Forum Posts by: Jared Viernes

Fellow Realtors and Agents, I have just started to do a detailed Market Analysis of my city and the surrounding area (Wichita, Kansas - 30 mile circumference).  I am looking for some critiques and suggestions: 

• How do you think I can improve it?
• Is there anything that is ambiguous or unclear?
• Is the information useful to homeowners, homebuyers, home sellers, and investors alike?

@Eric Walker it really depends on the lender and how it gets written up.  However, it is highly unlikely you will find a lender to try to push it through without actual landlord experience.

One thing to add. In order for the potential rental income to count towards your income for a VA loan you must have documentation of prior experience as a landlord or property manager. If you use the FHA loan then you do not, however you down payment and interest payment will be greater with an FHA loan.

Jenny Helms welcome! There is a pretty good group of active members here on BP. Check out the local REIA as well. We meet up every first Saturday at range 54 5:00 PM.

Eric Walker you have access to your second tier benefits for VA loan since it doesn’t look like you used up your entire entitlement. Talk to an experienced VA lender. Additionally, once you refinance out of your original VA loans you can apply to have your benefits reinstated (this can only be done once), and use them your entire entitlement again.

Andrew Robitaille Wichita has a pretty active group on BP. You have a good amount of money to work with, could find a JV partner in the area to work with. Is your family here interested, if your they are your boots on the ground then maybe you could get them to have skin in the game too.

Who is your partner Shane H. ?

@Matt Smith as long as the property cash flows assuming you have both sides rented out it doesn't matter what price you pay.  It's definitely not necessary to come in at 80% if the numbers work above that. Those are just rules of thumb.  

But if you can purchase for a little less than full price I would do that.  Its easy enough for the realtor to find the average asking price to purchase price ratio and then offer what it would be based on that; especially if there is no other interest.

@Matt Smith are you saying that the current tenants are in just one side of the duplex? Because you should evaluate the deal as if both sides are occupied with tenants. If both units are occupied would the income be $2200? If so it sounds like there is plenty of meat on the bone for when you move out. Additionally, you are not hitting anywhere near your total VA benefits so if this is your first VA loan you can use your second tier benefits on your next place. After that you can refinance your VA loan and apply for your benefits to be reinstated (this can only be done once); then use your VA loan benefits two more times if you'd like!

A few more things you might want to think about.  Are the units individually metered for electricity and utilities - can they be?  How long have the current tenants been in the unit, what is the turnover rate for properties like yours in the area?  If you are expecting 1 month vacancy per year you need to input a 8% vacancy rate making a $2,200 rent actually about 2025; if 2 week vacancy per year your rent will be around $2,100.

Best of luck to you!

If you are purchasing at $58k you are not using up hardly any of your VA loan benefits. When you move you can use your second tier VA loan benefits without paying off or refinancing the original loan. One word of caution for when you do leave. Make sure you line up a job for when you leave the military to ensure you can get another loan. Lenders like to see at least 2 years at a job; it will look much better if you have a job related to your current MOS. Best of luck!