All Forum Posts by: Matthew Swisshelm

@Che Chiu Wong - Thanks for the advice! I'm working with a few people in the area, one of them is actually from BP. I love this place, the networking and comradery is outstanding.

I know any money I am going to make will be made on the deal. So, I'm taking my time and getting to know the numbers of the area. Fortunately for me I'm not in a hurry. 

Initially, because I have to live in the property. I am only looking at the income from 75% of the property. I don't plan on using any cash flow made from the property. It will be set aside for possible expenses. 

After a year this should result in a nice "nest egg" for the property. Once I am able to move out and convert the property into a complete investment property and start receiving 100% income vs. the 75% from the property then I will consider it as actual additional income. 

So in short, for the first year the property won't be an investment property. It will be used to pay my rent thanks to others. Once I leave. It will then become an investment property.

@Tyler Laugherty - This could easily be done with an FHA loan. The only difference would be the down payment percent. ~3.5% FHA vs. 0% VA.

If I didn't have VA benefits, I would be using an FHA loan.

@Fasil Khan - There is NOT a limiting amount of time you can use your VA loan. Once you get that benefit. You get to keep it.

As for the down payment percent. There are certain times when a VA backed portion of the loan will not be enough, and you will be required to put a down payment.

It would just depend on the amount of the loan. But In most cases, there is no down payment.

This is my understanding and please feel free to correct me if I am wrong. I've not used a VA loan. So, I am only able to reference what I have read or heard from others.

Oops, accidently posted reply.

Let me try that again.

@Joe Fairless- From what I can tell, and the research I've done it seems like a sound strategy. I posted here to either get information supporting it or to learn why it wouldn't work. Keep an eye on the thread and hopefully we both can learn from others that have done it!

- Yes, I have had experience with it. I've been on the rent paying side of things. Living with friends that have purchased homes. I just rented a room from them and paid them a % of my BAH. It was great and it worked out well for everyone.

This would be a bit different than that arrangement though. 

I wouldn't be renting out just a room. I would be renting them a full unit. This would probably not be cost effective for a single person trying to pocket some of their BAH. Unless, they team up with a few of their buddies and decide they want to be roommates. 

My potential renter(s) are most likely going to be families that want a little more space.

@Joe Fairless

Good morning everyone!

Today, I'm going to lay out the REI plan that I intend to follow over the next 2-3 years. In doing so, I hope that you fine members of BP will troubleshoot any short-comings that I do not see.

This is going to be a fairly broad explanation. So, if you have any questions or would like clarity please ask! 

Thank you in advance for your help.

Let's get started!

3-6 Months

Deal #1 - Purchase a 3-4 unit small multifamily property. 

• VA loan for financing @ 0% down.
• Closing costs + Repairs = Personal Cash.
• Rent 75% of the property and live in the remaining 25% to comply with VA loan requirements.

(The goal of this initial deal is not to create a significant amount of cash flow initially, the purpose of this deal would be for HH (House Hacking) and living "Rent Free". While pocketing military BAH. Which for all intent and purposes WOULD be additional cash flow...)

VA loan requirements are that I must live in the property for a year before I could move out for whatever reason. Which leads into Deal #2.

1 Year Post Deal #1

• Refinance Prop. #1 to pay off VA portion of the promissory note.
• Give a reason for acquiring a different property. (eg. Closer to work, new family requires additional space, etc.)

Deal #2 - Purchase a second 3-4 unit small multifamily property.

• VA loan financing @ 0% down.
• Closing costs + Repairs = Personal Cash .
• Rent 75% of the property and live in the remaining 25% to comply with VA loan requirements.

(Moving into Deal #2 Prop. will then free up the unit in Prop. #1 which can then be rented out and will then become a CF (Cash Flow) investment property. In its place, I will be HH the 2nd property and will continue to live "Rent Free".)

Complying with the VA loan requirements on Deal #2 will again require that I stay in the property for a year before I am able to move out and turn Prop. #2 into a complete CF investment property.

The timeframe for the above plan is going to take place over the next 2.5 years.

_________________________________________________________________________________

I know it was kind of a long read, but please. Give me your honest opinion about the above plan and let me know of any gapping holes I am not aware of! 

Again, thank you in advance for your help!

-Swiss

@Antonio Esquivel - What a great flip and hold deal. 

I'll be moving to Bellevue at the end of this month. I like seeing RE deals from a future location before I even get there! Always a good indicator.

Thank you guys for the warm welcome!

Tristian - I'm sure it will be, I've already learned a ton already. It will definitely make my chosen path a bit easier.

Stephanie - I've already listened to a few of them. Pretty sure they are going to become my new gym soundtrack.

Hello, to my fellow REIs!

My name is Matt Swisshelm, but my friends call me Swiss.

I just wanted to introduce myself here on the DP forums and start getting engaged with everyone.

I'm very new to RE, but I'm eager to get started. I'm currently located in San Antonio, Texas, but, I'll be moving to Omaha, Nebraska in a few weeks. So, if anyone in SA would like to meet before I leave I'd be more than happy to! Likewise, if  you are located in the midwest. Please feel free to reach out. 

I already have a plan for my first deal to take place as soon as I finish relocating, and I can't wait to get started. 

I love writing and I plan on being very pro-active here on BP. 

Thank you, for reading!

-Swiss