Quote:
Originally Posted by nmlosa
We currently had to move our family 1,200 miles across country due to a Military PCS move. We tried selling our primary residence prior to moving but decided to just go ahead and rent it instead. We DO currently have it rented and under lease. Now that we are moved, we really miss having a home and want to obtain another loan to purchase a second house which would now become our primary residence.
Since my husband used his VA entitlement on our house we just rented I was going to use my VA benefits for this new loan. We DO have about $35,000 in equity in that house.
I found a house that I absolutely love and would be able to afford both mortgage payments if something happened where I had a renter bail on the one. It is silly for me to pay $1,500 a month in rent right now when I could purchase the same house here and pay $960 a month.
Will still having the mortgage on the rented property hurt us for obtaining a new primary residence?
Do I have more advantage that we have another VA entitlement we can use?
I have purchased 3 homes in the past but never owned more than one at a time. I am really nervous since this is a whole new situation.
I would appreciate any advice. Thanks
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First off, I would like to thank you and your family for your service! As a Military spouse, and Military Veteran myself, I know the life all too well. So thank you!!
Owning two homes....Should one do it if they are in the Military? Depends on many variables.
1. Funds. Do you have enough saved for a rainy day? What would happen if you can't get a renter into your investment property? What if something major broke?
2. Debt/Income ratio. Not sure if you both work, or if you just have 1 income. Carrying two mortgages is very risky.
3. What if you transfer again in a few years, and don't have renters for either properties. Now you have two mortgages and a rent payment to cover?
Many things go into whether or not you are ready to become a landlord and own multiple dwellings. As a Realtor, and as a military spouse, I would not advise anyone in the military to add such a stress. You have enough on your plate with impending transfer seasons.
I would contact a local financial advisor, Usaa has one. Get their opinion as to the financial side of things. Also speak to an Attorney. Ask them how the eviction process works if someone is renting your place, however, is refusing to pay rent. All of these different things add up and can put a damper on a successful Real Estate investment and/or Idea.
You want to be sure you thought of everything so you are not increasing debt and liability, and getting nothing in return.
Good luck to you!!
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