All Forum Posts by: Lucien Perreault

@Joe Villeneuve

What calculation are you referring to? Is my military pay only considered when applying for VA and FHA?

@Paul De Luca

What I meant by "0 income" is all the deductions that I'll have will make my tax liability 0 which looks like 0 in income from an IRS stand point. Now, is my income 0? Absolutely not. Between my military income and the cashflow of my property, I am far from 0.

Hi Michelle. I live in Waukegan currently and am actively on the investment trail. I moved here from San Diego a year ago, bought a place near downtown Chicago, then moved to Waukegan to be closer to the Naval Base where I work. There is plenty of potential here with the lack of available rentals and military members always looking for some where to live. Also, the city just invested millions into the shore area along the lake which should bring some life back into this town. It is clear that covid hit this city hard but with Chicago becoming very expensive, there seems to be a move north. Waukegan, Zion, and Winthrop Harbor look to be good plays moving forward. Let me know if I can be of any further assistance!

Good Evening BiggerPockets,

Last year I bought my first major rental property with my VA loan in Roscoe Village, Chicago, IL. The property had already been rehabbed for the most part but was not fully occupied. I have since moved out, raised the rents, have the building full occupied and cash flowing really well with a property manager running the operation.

I may be suffering from a lack of patience but, I would like to move on to my next property. I cannot use my VA loan again for some time and I have continuously run into funding approval issues. The lenders I work with told me once I file my taxes this year, I will not qualify for a loan for the rest of the year since my income will be 0 on paper and my cash reserves are not the strongest currently(they are steadily growing). They also stated my DTI ratio is too high because of the mortgage on my building even though the rents cancel it out.

I am looking for ideas on how to move forward with buying another property without running into more financial road blocks. I'm very eager to get back out there and find more deals to continue my growth. I have plenty of credit at my disposal but I want to use it right.

I have read many books and I watch at least 3 videos a day on youtube about real estate investing but even with all the education, I have still found a wall that I cannot get through at the moment. Any guidance would be very much appreciated.

Very Respectfully,

Lucien

@Matt Lyons

Well said sir. Hard work over talent everyday.

I’m currently in escrow for a duplex in Chicago. The building has a finished basement that is currently being utilized as an illegal 3rd unit and the tenant is not a guarantee long term. When running the numbers, should I use the rental income from the illegal unit or only go with the income from the other 2 units? The property cash flows at the current selling price with the illegal unit included but the price would have to significantly drop without the 3rd unit. Also, the property has 2 open lots that can be sold separately once the deal is finalized. I would make a significant amount off the lots but the building would be a struggle to cash flow and has it own issues. Thoughts?

Active duty member taking orders to Great Lakes in May/June. Would like to buy multi family and need advice on the area and market.