Where do you guys think is the best place to invest in VA?
I am going to move to Fredericksburg this month and take a share of a car dealership over
and I plan on making enough to invest, also this would be my first RE purchase.
Also, do you think it is possible to achieve over 20% cash on cash annually?
I have compared some of the prices and rents in some areas and it seems that putting
20%-25% down you can get even around 40% cash on cash annually (EBIT) which seems to me to good to be true.
There’s nobody that can really answer that question. Returns like that are very easy - you just have to take risk to get them most of the time. I ahve a property that I bought two years ago with FHA (duplex, I lived in one side). It’s returning about 60% cash on cash every year, and that’s with repainting and replacing all the carpet on both units. I expect this year to be much higher. It’s in a great area.
But, you can’t do it unless you are willing to live there for a year. My wife will kill me if I try that again.
Do i have to live in there for a year because of FHA terms limiting to one purchase a year with FHA?
Also, are loans hard to get even if I have the down pay ready and also a reserve?
The last FHA documentation I got said that I would be an owner occupant for at least one year. We made it 54 weeks.