Today I wanted to give you three listener questions. So let's just call it an Ask Marco Three Pack. So today's first question comes from Lucas and he says, hello, Marco, let me start off by saying thank you for your podcast. It's been a great learning tool over the past two years. My question is in regards to VA home loans, which is veteran administration and the standard 10 Fannie or Freddie Mac loans. So if someone used a VA loan to purchase their primary residence, does that free up a 10th conventional loan that can be used as an investment property, essentially giving me 11 loans before having to start applying for commercial loans, one VA residence and 10 conventional for investment properties. Thank you, Lucas.













Lucas. Good question. I think this is probably one of those questions where some people are not sure or misunderstand it.
So the way Fannie and Freddie Mac look at your credit is how many home mortgages or loans mortgage loans do you have? It doesn't matter where it comes from. It still counts as a mortgage loan. So unfortunately it counts as one of your 10. So if you have a VA loan and it's actually on your credit report, it's going to count as one of those 10. So you're still going to be capped at 10. So you have nine Fannie Freddie loans and one VA loan. Simple question, simple answer, Lucas. I appreciate you. Um, submitting that. So thank you. And I'll just keep that one short and sweet.
Next question is from Benjamin. Benjamin says, hello, Marco, my fiance and I just purchased the townhouse. We were renting the previous owner. The landlord was done being a landlord and wanted to sell. We purchased the property at below-market or right around market. And no, we can turn it back into a great rental. However, we purchased the property as owner-occupants. Our plan is to stay in the property for the next year or two before moving out and turning the property back into a rental. What should we be doing during this one or two-year period? I know there are unseen profits and appreciation and equity, but I feel eager to see the property cashflow are there projects to the house we should look into. It was just renovated in 2019. Should I be looking to invest as a limited partner in other real estate deals where I can maybe see quicker returns on cash invested?
Okay, well, let me just start off by saying if it was just renovated in 2019, which is just over a year ago, then there's probably nothing you need to do or should do to the property. I can't imagine that there would be anything you can do to that property other than add a bedroom to increase what you would be able to rent it for when you ultimately go and rent the property. So I don't think anything you could do to increase the upcoming gross rental income on that property. The other thing too is you mentioned the next year or two before moving out, check with your tax advisor for the specifics, but as a general rule of thumb, if you live in the property for two years consecutively, you can move without having to pay tax on the capital gains of that property. I think the rule of thumb is it has to be two consecutive years over the past five. So if you wait the full two years and a day, then you will be able to move and keep that property.
And of course you wouldn't have any capital gains apply to you at that point anyway because you're not selling the property, but you can move to another residential property and consider that your new home and the capital gains exemptions. Now continue in kick in on that second property. So that first property can be actually labeled as a residential homestead or a home of yours. Now, something that you probably will want to do. And I'm assuming you've already thought about this, but find out what the market rent is compared to the purchase price or the, I guess, the market value in your case of that property, if they're kind of in line and you know that you can leave that property as is,