[eventusstultorummagister]

Originally Posted by MadManofBethesda

Wouldn't a 10% return equate to only $833/month? That sounds pretty reasonable to me to rent a single family house.

Or are you factoring in an expected 2 months vacancy period for every 12 month period?

$833? I would think with homes renting so cheaply it would increase the potentially for "strategic defaults". If your paying a mortgage that is twice that and 50% underwater what's the incentive to stay? Your credit will recover long before you recognize any potential for equity.

[MadManofBethesda]

Originally Posted by eventusstultorummagister

$833? I would think with homes renting so cheaply it would increase the potentially for "strategic defaults". If your paying a mortgage that is twice that and 50% underwater what's the incentive to stay? Your credit will recover long before you recognize any potential for equity.

Huh? What are you talking about? What mortgages?

I was responding to your post that investors were paying cash for $100k properties and looking for 10% ROI on rent of $1000/month and you stated that was unreasonable given the current economic environment.

I was just questioning your math and noting that a 10% return would only require a market rate rent of $833/month and that such a rate for a SFH seemed easily obtainable to me.

[eventusstultorummagister]

Your right, it was off topic. I had just finished reading a foreclosure thread and got "lost in the moment"...

[bledsoe3]

Originally Posted by Gomezy3k

Personally wouldn't hurt my feelings a bit if all those investors lost their shirts.

That just sounds like bitterness. I bought a place as an investment/vacation property. I'm not flipping it and will not be renting it out. Don't be mad at people who have worked hard and able to purchase for cash.

[Gomezy3k]

Originally Posted by bledsoe3

That just sounds like bitterness. I bought a place as an investment/vacation property. I'm not flipping it and will not be renting it out. Don't be mad at people who have worked hard and able to purchase for cash.

Bitter, aggravated and PO'd is more like it. After 6 months of trying to buy a house only to be cut out of the housing market by people who pay cash just for an investment and not to live in, you can say I am definitely not looking kindly at those who are shutting out people who just want a place to live in.

And even worse, once these same (trying to be nice and not get censored by calling them what I would like to)... individuals... buy all the cheaper houses and then fix them up and then try to sell them for prices nowhere near the appraised value need to be shot.

If as you say you are not renting out or flipping your property then that is different. The ones I am mad at are those who are screwing the little guy who just wants to buy a damn house.

[Gomezy3k]

Originally Posted by OscarW

Not heard of V.A but I got one with this company

ALM | WELCOME TO THE ALTERNATIVE LOAN MACHINE (http://tracking.thealternativeloanmachine.com/click.track?CID=118793&AFID=124867&ADID=285468&SID = - broken link)

They're are a regulatory agency that makes sure that the company broker programs listed on there site can deliver.

The VA loan is for those who served in the military.

Man I will have to check that out... Stupid guy I am working with presently wants all sorts of paperwork, and now insists I furnish IRS tax info for 2008 and 2009. Which would be fine except I have NO taxable income (VA Disability is NOT taxable, and my Social Security Disability which is taxable is not high enough to file) so kind of in a Catch-22 here...

[eventusstultorummagister]

Originally Posted by Gomezy3k

The VA loan is for those who served in the military.

Man I will have to check that out... Stupid guy I am working with presently wants all sorts of paperwork, and now insists I furnish IRS tax info for 2008 and 2009. Which would be fine except I have NO taxable income (VA Disability is NOT taxable, and my Social Security Disability which is taxable is not high enough to file) so kind of in a Catch-22 here...

Gomezy3k,

For a VA loan the only documents you should be required to provide are:
1. Last 2 years W-2's
2. Copy of DD-214
3. VA Cert. of Eligibility
4. Copies of your V.A. & S.S. Disability Award letters
5. Last 2 months bank statements

I fully understand your frustration, the market is saturated with buyers right now. Be patient, the banks won't be running out of inventory any time soon! The rental market is getting softer and investors will have an increasingly difficult time finding viable long term tenants.

Try and refrain from getting caught up in the frenzy...
Remember, anyone who bought a "bargain" this same time last year is already saddled with a considerable loss(albeit theoretical).

And thank you for your service to our country!

[Gomezy3k]

Originally Posted by eventusstultorummagister

Gomezy3k,

For a VA loan the only documents you should be required to provide are:
1. Last 2 years W-2's
2. Copy of DD-214
3. VA Cert. of Eligibility
4. Copies of your V.A. & S.S. Disability Award letters
5. Last 2 months bank statements

I fully understand your frustration, the market is saturated with buyers right now. Be patient, the banks won't be running out of inventory any time soon! The rental market is getting softer and investors will have an increasingly difficult time finding viable long term tenants.

Try and refrain from getting caught up in the frenzy...
Remember, anyone who bought a "bargain" this same time last year is already saddled with a considerable loss(albeit theoretical).

And thank you for your service to our country!

Man I wish... whoever the lender is, (Castle & Cooke Mortgage, LLC 6900 Westcliff Drive, 8th Floor Las Vegas, NV 89145) they are bound and determined that I either need 2007 and 2009 income tax filed OR something saying I am exempt from filing. I went to the IRS and after about an hour got to see a agent who could not under stand why I was there, but he wrote a letter saying I didn't file for 2008 and 2009. And the idiots at the loan company came back and said "Well it doesn't say he is exempt, it says he didn't file." I have come to the conclusion that these loan companies are manned by a bunch of retards. Anyone with half a brain should understand what is going on...but NOOOOOO not them... So back to the IRS...Again. I did go to a tax preparer and filed the 2009 tax forms....for 50 bucks. They had to say I earned a whole dollar so their system would allow them to file.

[eventusstultorummagister]

I did not have any success with REO properties even when I offered 100% cash. I started looking deeper and found that they were being bought up by wholesale buyers who were using professional bird dogs with transactional financing (double closings).

There is another bubble forming now... the glut of SFR rentals on the market. This will favor those looking to rent (supply and demand) but with a lack of employment opportunities I don't really see people lining up to sign a 12-month lease.

In a way I am glad I didn't purchase an REO, I may have encountered feelings of guilt taking benefit from another's misfortune. I sleep pretty well these days, I plan on keeping it so.

[eefran8]

My offer was accepted on a house back in October using a VA loan. Not sure if you mentioned how many offers you had out there, a good realtor would give you the advice not to be so selected make offers on any property that is acceptable cast a wide net. I had put in about 15 offers in a month. But again my realtor knew how to make it so I wouldn't get penalized if I refused an accepted offer. I don't think it's so much the fact you are using a VA loan as it is there's probably about ten other offers on the same property you're bidding on.