Posted by Ron on December 10, 2000 at 20:59:23:
Perhaps by the time VA’s are REO’s, they are for owner occupied only, I don’t know.
But, as an investor, I’ve bought two VA’s shortly before they went back to the bank. The purchase was from the owners, not the bank.
I’ve had to qualify, but due to some really low rates, I chose to go thru the paperwork. Ugh!
Was worth it in both cases as I got a property from a motivated seller (just before the properties were forclosed) = a good deal for me + them since they don’t have the forclosure on their records.
These assumptions are not initially a zero down or even close, but they can be valuable if you want a really low rate that may exist on the property.
This is important as a low PITI can equal good cash flow for a landlord.
As far as I know, VA’s and FHA’s are always (?) PITI.
After some well planned rehab and a refi they can be a zero down (if that’s what you wnat) or just a profitable rental for many years if you keep the VA loan.
Like any purchase, always make sure you’re still getting a good deal insofar as your price vs the neighborhood and the price you can get —and how often you may have vacancies due to neighborhood conditions and other considerations. Lots to think about in these areas. Lots.
Usually, a pre-repo will have a lot of repairs that have not been handled over the term of the loan. And, when they know they are selling at zero equity, they may make some additional repairs necessary out of anger.
Just be alert and do your due diillegence, as a property report is probably not available.
Do the newer VA and FHA loans have value for us as assumptions for us as investors?
Yes. At least for me.
Hey folks, it just depends on what you’re goin’ for.
I’m sorry for the typos.
Lookin’ forward to your + & - responses.
By the way, I’ve bought and done the CS program.
Without CS I probably wouldn’t have had the limited success I’ve had.
I’ve received cash back at closing…just make sure the property can affort it. It adds to your PITI.
Good luck to you…to us all…