Rental Home

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mjones6788
Posts: 6
Joined: Thu Sep 10, 2015 12:37 pm

Rental Home

Post by mjones6788 »

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.

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evilanne
Posts: 1886
Joined: Thu May 14, 2015 6:52 pm

Re: Rental Home

Post by evilanne »

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

armyrn
Posts: 30
Joined: Fri Jan 11, 2013 6:35 pm

Re: Rental Home

Post by armyrn »

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.

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ArrieS
Posts: 1072
Joined: Sun Aug 05, 2012 10:56 am

Re: Rental Home

Post by ArrieS »

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.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

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evilanne
Posts: 1886
Joined: Thu May 14, 2015 6:52 pm

Re: Rental Home

Post by evilanne »

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.

mjones6788
Posts: 6
Joined: Thu Sep 10, 2015 12:37 pm

Re: Rental Home

Post by mjones6788 »

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! :lol:

Seriously, thank you for the insight.

airwinger6
Posts: 15
Joined: Thu Jan 23, 2014 8:25 pm

Re: Rental Home

Post by airwinger6 »

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
-My fantasy account mirrors my real TSP account-

ajareds92
Posts: 35
Joined: Tue Aug 04, 2015 11:16 pm

Re: Rental Home

Post by ajareds92 »

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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Tempasante
Posts: 3
Joined: Sun Feb 06, 2011 10:51 am

Re: Rental Home

Post by Tempasante »

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.

kdfwr310
Posts: 25
Joined: Fri Jun 30, 2017 12:32 pm

Re: Rental Home

Post by kdfwr310 »

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.

wisepierre
Posts: 93
Joined: Thu Feb 18, 2016 11:55 pm

Re: Rental Home

Post by wisepierre »

I know biggerpockets.com is a highly recommended site for those getting into the Real Estate market.

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