All Forum Posts by: Eric Dufault

if you're studying for the exam I highly recommend shelling out $60 for nightbeforetheexam.com.  I was on there an 2-3 hours everyday the week before the exam and confidently passed the general questions.  I would study the state specific book more in depth as the website didn't adequately cover the state stuff. If you're fresh out of your 40 hour course, it will be a big help as well.  I took the 40 hour course a year prior to the exam and it wasn't fresh in my head.

I'm in the process of deciding on a brokerage now, leaning towards Keller Williams, mainly because I'm a huge fan of Gary Keller's books and they have a few interesting options other brokerages don't offer.

One of the previous commenters made the point that the barriers to acquiring a license are way too low and I couldn't agree more.  After a weekend course and passing a memory exam, all of a sudden you are licensed and relied upon by people to make the most important investment of their lives.  It really is insane, especially in Massachusetts where everything else seems so heavily regulated.

Anyways good luck in your endeavors!!

Simple scenario and question:

I'm purchasing a duplex with a VA Home Loan for $270K.

Down the road I'd like to do the same thing.

A normal VA Loan Maximum is $417K but changes to approx. $533K with a duplex:

http://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx

When I buy another home can I subtract the $533K from $270K leaving me with $263K to purchase another property?

Good Afternoon BP,

This is a question for fellow veterans who have bought a duplex or multi-family in the past and then went on to move out of the property to purchase a second.  After a few years of searching I have found my ideal duplex (I'm way too picky) and am looking to buy it with no money down and inhabit it until I want to improve my living situation.  Ideally I would do this with a more expensive duplex after a year or two.  The home I am interested in purchasing is going to be around $265K in MA.  The max entitlement in my county is $417K.

The Big Question is how do I free the $417K back up when I'm ready to move on.  Can I refinance the initial loan into a different type of loan through a different bank ?  Do I need a certain amount of equity in the property in order to do that?  Since I'm going to be $250K in debt, am I going to run into major issues qualifying again.  Will I be able to prove income when this happens?

I feel as though I've always just assumed that it would work itself out without performing my due diligence. I also love the idea of not paying a mortgage and living for free which is why I've liked the Duplex/VA Loan idea. It seems like there isn't a lot on the message boards about what to do after your first purchase though. Hopefully we can get a string here that clears it up and lays a blueprint for us veterans moving forward.

I actually got off the phone with the VA yesterday and because they fall on two different lots, they are saying it's not possible. I'm still going to call a few different loan officers who have dealt in VA Loans for multi families and see if there is a way to pull it off. Also the maximum increases with each unit, $417k is just the cap on a single unit, I believe it jumps to $567k for two units and all the way into the $800k range for a four unit. I'm also looking into a VA Loan for one and seller financing for the second. If there is a way to get both with nothing down, I'm going to get both.

Hey BP, Going to look at a couple of duplexes today. Can I use a VA Loan to buy both properties? They are being listed by the same owner. They fall under the maximum allowable limit for four units required by the VA.

I've been looking into purchasing a duplex as an owner occupant utilizing no money down with a VA Loan. After this is completed and I have lived in the home for a certain period of time, I would be looking into renting out the unit I occupy and purchasing another duplex. What changes can I expect when I make this switch from owner occupied to full blown rental property? Insurance, refinancing mortgage, tax implications, etc. etc. Thanks and happy Monday everyone!

Why are you waiting until you get out?  Also I agree with @Account Closed 

that the CD idea is a little too conservative. I would get into a multifamily as soon as possible (with no money down) if I could do it all over again while I was stationed somewhere. Once you either take orders or decide to move somewhere else you could refinance the VA loan and utilize it again with no money down, assuming by that time you would have at least 20% equity in the property. Just my two cents.

Keep in mind this website is dated 2009 but it should give you the framework as to what you'll be up against as a landlord in our lovely commonwealth.

http://www.attorneyross.com/landlord.html#23

Also, be sure to check the town website's housing and health departments as each one has specific requirements on how to maintain rental properties.

@Lloyd Whyte

Where was the property and how did things work out for you?

Welcome @Shane Cote

Lots of great information on this site. Listen to the podcasts to other people from Mass, network on here, there plenty of successful people on this site that are willing to help you in your endeavors.