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I completely agree, put down as much as possible so that you can pay down the house even faster. We put down around 30% and are now able to bring in 2,300 for rent on a 1,200 mortgage. Every bit of that minus the 10% rental manager fee goes right to the mortgage.
A successful investor will buy all the propeties he can get for NO money down.
Can you please explain to me how investors buy properties on Oahu with no money down? I'm curious.
For me, I generally need to put down at least 25% as an investor and 20% down as an owner occupant. There are some exceptions to this but it costs me in points, fees and interest rate; once you factor this in, the numbers don't pencil.
The closest thing I've done to "zero down" is to buy a property all cash, renovate it and then have it appraised and refinance it with the higher value of the renovation. If I'm lucky, I can get the additional value in the work I do IF the market is in an upswing.
For example, purchase a $1M property that is in need of major repair all cash (banks won't lend on "tear downs" so this makes the audience that can qualify very small). Spend $500K renovating it (again with cash). Hopefully having the property appraise at $2M after the work is done and do a cash-out refi with conventional 75% LTV investor financing... ultimately walking away with essentially zero down on the property for the life of the fixed rate mortgage.
But in order to pull this off, I needed a ton of cash for about 6-12 months. The need for working capital is inevitable to me.
So please explain how you really buy investor property here with absolutely nothing down.
You still have some costs - and you aren't supposed to rent out the property with a VA loan.
Viper, you can rent out VA properties, but only after the Veteran has remained (lived) in the home for the first two years.
Most of the other info is correct here, excet it is true there is no PMI for veterans using their VA and if the veteran is 100% disabled, the VA Funding Fee is waived as well.
Ocean Pointe/Hoakalei as well as Kapolei and the Gentry area all have a fairly large military homeowner and Renters market. We lived there for a while and still have quite a few friends still in the area.
Can you please explain to me how investors buy properties on Oahu with no money down? I'm curious.
So please explain how you really buy investor property here with absolutely nothing down.
You said, "I don't care how enticing a zero down or low down loan is... they are entirely idiotic.
If you don't have 20% down, you shouldn't even bother looking at buying any real estate. Period. "
I said a smart investor will take all the no money down deals he can get. There are several ways to get 100% financing. The OP here is getting a 0% VA loan.
You are not comprehending what is being written. Also anyone that considers themselves an investor has to be pretty stupid to lose money on Hawaii property.
You are not comprehending what is being written. Also anyone that considers themselves an investor has to be pretty stupid to lose money on Hawaii property.
That essentially applies to everyone who bought in Ewa Beach 2003-2007 and had to sell from 2008-2012 - or on most of the Big Island.
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You said, "I don't care how enticing a zero down or low down loan is... they are entirely idiotic.
If you don't have 20% down, you shouldn't even bother looking at buying any real estate. Period. "
I said a smart investor will take all the no money down deals he can get. There are several ways to get 100% financing. The OP here is getting a 0% VA loan.
You are not comprehending what is being written. Also anyone that considers themselves an investor has to be pretty stupid to lose money on Hawaii property.
I was specifically asking you how to buy INVESTOR property here on Oahu with no money down since you keep referring to "investors". Homeowners are one thing, investors are a completely different animal. Surprising you don't know the difference.
Investors receive very different rates and terms on real estate than owner occupants. That's pretty much common knowledge to anyone. Further, it's illegal to buy investment property under government subsidized/backed products; specifically those that require that the home be owner occupied from day one and for a specified minimum period of time. People have gone to jail for this.
That's quite an amazingly arrogant comment - "anyone that considers themselves an investor has to be pretty stupid to lose money on Hawaii property"
That is virtually every single person that purchased real estate in...
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