All Forum Posts by: Nicole A.

Yeah, I'm no guru on VA loans but I'm pretty sure it has to be owner occupied.

You could look into what William suggested and see if you could get a duplex and live in one unit. But then, that might be a problem if you don't plan to live in IA.

Another tactic for you could be to purchase a home to live in in VA (assuming that's where you want to live), and plan to rent out a bedroom or two. You could use this rental income to save up for the down payment on your first true rental property. This will also allow you to write off some extra house stuff on your taxes. Just simply don't mention to the VA loan people your plans to rent out a room; they have no need-to-know that.

Just be sure you don't factor in potential room rent when buying your house! Buy it on assumption of only your salary. The rent is just gravy to save or to put to your prinicplel...but sounds like you want to invest, so save it up!

What part of VA are you in? If northern VA, you could get probably around $700/month per bedroom! I'm near Ft. Meade, MD (NSA) and rent two bedrooms for $700 each and they do no include utilities.

I'm near Ft. Meade, Maryland and $500 can maybe get you a bedroom in someone's home. It would probably be a decent area at least.

For $700 each, we're renting out two bedrooms in our home and that doesn't include utilities. Past housemates have told us that our rent is a little higher than most other rooms, but they were willing to pay it because they really liked our house, location, and well...us! :-)

I'd say my neighborhood is pretty nice. I personally love all the old trees and the contemporary home styles.

I think we need to tone down the negative posts in here...

So are you saying you've already been told that you can't get a mortgage because of your debt to income ratio?

Are you buying in your name or in LLC name?

I agree that some are being a bit too harsh. Yes, he has a lot to learn, and we can't assume his tone as arrogant. He could have been cheeky. I notice he has not responded back...I was looking forward to his response regarding long-term plans, learning about all the other expenses, and his thoughts on the suggestion of buying lots more property by just doing down payments rather than buying a few outright.

My motivation is to eventually not need to work a full-time office job. I'd rather do something part time that I love such as work at the county animal shelter or something.

I have a goal of at least 1 rental property per year, but I actually shoot for 2 per year. So far, I have two 2-unit properties. I also rent out two extra bedrooms in my personal home to make some extra cash.

I understand you don't think it's ideal to rent an extra bedroom in your home, but if you're serious about making some extra cash, this is an easy way to let space make money for you. PLUS, you get to write off some extra stuff on your taxes.

Finding a housemate is not like finding a tenant. You find someone who fits your lifestyle....or find someone who wouldn't be home much anyway. I've had several housemates (2 currently) and they've all worked out except one guy who was dirty. We either happened to become great friends, they stayed to themselves (out of my hair), were clean, and were really a helpful extra set of hands around the house.

I think you should seriously consider it. Let your house make money for you. It's really not *that* big of a sacrifice. Just do it temporarily. Rooms in your area (Mobile, I assume) are getting around $400-500/month. That's money on the table...

It depends on time of year (not as many moving in winter), location, and your marketing of the property! If it's all good, maybe a month (or less even)? Just please be picky and not the first person who comes along if they don't seem right.

As for your income, do you own your own home? If so, perhaps you could consider renting out a bedroom in your home on a month-to-month lease for a few hundred bucks, plus split utilities? Look at Craigslist to gauge how much you could get for rent. I rent two bedrooms in my home for $700 each *and* split utilities...really makes a difference and not a bad gig! And month-to-month means you can end it any time. Just a thought. :-)

Congrats on your success so far!

Definitely be sure to pay special attention to Patrick's post about all the other expenses you need to factor in and the 50% rule.

And even though you're the property manager, you should still factor the cost in (and maybe actually pay yourself)!

Also, consider getting some properties with a mortgage. By taking all that cash you have and only paying down payments, you could acquire so many more properties. The trick with those is calculating will it have positive cash flow even with the mortgage.

Keep us posted!

Well, don't actually call him a liar to his face. Just say "thanks for your interest but we're going with another applicant". And you're not lying yourself....you are going with another applicant, you just haven't met yet. You do not owe him answers or explinations if he says "I'm the only applicant". Just repeat and tell them to have a good day...or it if it was in an email, simply don't respond.