Rental Home
Moderator: Aitrus
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Rental Home
I am considering a move from a low cost of living are to a higher cost of living area the end of this year. I am considering renting out our current house (VA home loan bought in Jan 2016). It is located close to a large military installation. My idea would be to hire a management company to take care of the residence. I wanted to hear if anyone had any experiences, suggestions, recommendations, etc.
I am aware of only 1 VA home loan at a time and that would limit my funding options for the new residence.
I am aware of only 1 VA home loan at a time and that would limit my funding options for the new residence.
Re: Rental Home
Take some time to research the rental market in your area. You also want to check out the management company(s) and make sure they are experienced with rentals and have a good process for screening the renters. Good idea to have an emergency fund to cover anything unexpected. I've had a good experience but there are horror stories. See viewtopic.php?f=31&t=13401
Re: Rental Home
You can have 2 VA home loans simultaneously but it still comes down to the lender and of course it's income/debt ration dependent. I just did this with USAA about 6 months ago.
Re: Rental Home
mjones6788 wrote:I am aware of only 1 VA home loan at a time and that would limit my funding options for the new residence.
You may or may not be able to have two VA home loans at the same time.
If you go to Ebenefits, log in, click on Manage (second from the left), go down to housing, click on Certificate of Eligibility for Home Loan you'll be able to see how much of your benefit is not being used by your current home loan.
Also, not saying this is a good option that depends on the circumstances, you can refinance your home loan as a regular home loan and free up your VA benefit for another loan if you need/want to.
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Re: Rental Home
Be careful on the refinance option...the rules are different once it becomes a rental property so you would need to do that while you are still living there. Since you haven't been in the house that long...it may be difficult to meet the equity requirements.
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Re: Rental Home
evilanne wrote:Be careful on the refinance option...the rules are different once it becomes a rental property so you would need to do that while you are still living there. Since you haven't been in the house that long...it may be difficult to meet the equity requirements.
Well judging from all the IRRL (and similar) junk mail we get it shouldn't be a problem at all!
Seriously, thank you for the insight.
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Re: Rental Home
Afternoon,
Be careful of renting, renter did 60,000 worth of damage to a rental property near me. Out of state owner had to sell at a loss because of them.
Check it out..
https://www.zillow.com/homedetails/5068 ... 3512_zpid/
Airwinger63
Be careful of renting, renter did 60,000 worth of damage to a rental property near me. Out of state owner had to sell at a loss because of them.
Check it out..
https://www.zillow.com/homedetails/5068 ... 3512_zpid/
Airwinger63
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Re: Rental Home
Sounds like someone didnt have very good landlords insurance / or good enough evidence of what the condition was upon the move in of a tenant.
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Daily Seasonal Strategy since 23 Aug 17
Following Strategy #16292
Current 12 Month PIP 27.38 %
Maxing 100% Roth TSP
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Re: Rental Home
Check out a VA loan with your lender. I have had a VA loan on a house if DC area for 6 years now, and I am currently refinancing my house here in Washington state using my VA also. I am told that the law changed a few years ago and you can have multiple loans - the limitation is on total amount borrowed.
Re: Rental Home
I own rentals, they're paid for though. Renters come in all shapes and sizes. Some take great care of your place, others don't. I run my own rentals, as you will care much more about your property than a mgt company (yes I've had those run my places too). Things to consider.
1. If the place did not rent, or you weren't getting paid by the renter, could you make two mortgages for several months? (It can take months to get a renter out, depending on state laws)
2. How far are you going to live from the rental? If that distance isn't within driving distance, you're asking for trouble.
To me, you are running a high risk plan by keeping the place, unless it's paid for now. If you're sitting on a large pile of cash and want to take the risk, go for it. If money is tight, this isn't the dream scenario for you.
1. If the place did not rent, or you weren't getting paid by the renter, could you make two mortgages for several months? (It can take months to get a renter out, depending on state laws)
2. How far are you going to live from the rental? If that distance isn't within driving distance, you're asking for trouble.
To me, you are running a high risk plan by keeping the place, unless it's paid for now. If you're sitting on a large pile of cash and want to take the risk, go for it. If money is tight, this isn't the dream scenario for you.
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Re: Rental Home
I know biggerpockets.com is a highly recommended site for those getting into the Real Estate market.
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