All Forum Posts by: Scott Grover

Thanks @Joe Fairless and @Upen Patel for the feedback, and I'll keep you in mind Upen when it comes time for loan application.

Joe, I assume your are referring to just getting a good deal off market.  Is there something else I'm missing?

@Account Closed What makes renting VA Loan properties so hard to rent? Right now, in our market it's pretty tough to find a duplex in which one side will cover the mortgage, including the few selling at auction. But that's still my goal - to find one where rental of one unit covers the mortgage.

I just noticed you post as I also posted about a VA Loan. Maybe this was already answered, but I think it's a year.

Buying our first rental property is becoming a real possibility using a VA Loan. Looking at duplexes in the $320-400k range in south King county and Pierce County WA. As a VA loan I understand it needs to be retail price and good condition (no foreclosures refi's etc). Ex: I felt OK with a $1900 mortgage and $1250/month of income while we live in the other side, for about a 6.5% cap rate (though I wish we would have started a few years ago when a 10% cap rate was more likely).

But yesterday I listened to the latest podcast with Ben Leybovich, Brian Burke, and Serge Shukhat and one of things they all agreed on was that investors should by property below it's intrinsic value. This gave me pause. I recall the phrase that "a lot of investors were over leveraged" which could include people who bought homes with 6-7% cap rates with a no money down VA Loan. I'm thinking that if rents and prices fall, we'll still be better off than if we'd bought a SFR that didn't generate any income.

I'm definitely not afraid of risk, but I also don't want to charge ahead blindly into a pit either.  Is this a fair risk?  Please discuss.

@Ryland Taniguchi runs some great wholesaling workshops in both Bellevue and Tacoma on a monthly basis.  These would be great places to learn the numbers.  Also check for local meetup groups in the area.

I love this Chris! This is very similar to what I hoped (and still hope) to do when I started my first flip earlier this year. I didn't really want to just "give" homeless people a place to live but rather use the home and some work as tools to transform people into productive members of the community - many don't need much, others need a lot. So I flipped the first property to learn the process, and make a little cash in the process. Basically, I'm thinking of running a homeless program but am hoping to work toward no government support.

Sounds great John.  I also live in Auburn, but I rent a duplex right now.  Just flipped my first house and it's in Pierce County.  Would like to do buy and hold in the future.

@Jack B. Congrats on the progress so far.  I think that regardless of what happens with interest rates, you'll have properties that rent for rates that provide good cash flow in a great rental market.  Keep refinancing to purchase the next, and if interest rates rise it will be a small blip in your progress - that's part of investing right?  There's always what-if's, but not letting them slow you down is the key to progress.

I hope to be wondering the same thing a few years from now when I get more rentals.

Good luck to you. I'm in WA and unfamiliar with wholesaling and there contracts.  I bought mine at auction. 

Where is it located?

@Jarvis, I will share the numbers after we finalize the sale.  Hopefully next month.  It's quite a leap, but it's the best way to learn.