Biggest Bang For Your Buck

[Peter Wellman]

Hi Everyone,

I'm looking at buying my first rental property and I could use some advice.

I'm looking to buy a house that i would live in for a year or so and then buy another property and either live in the current on and rent the second out or the other way around. 

Here is a list of my position and options.

1. I recently got out of the military, so I have the VA loan however I have about 25,000 in liquid cash, and 20,000 in mutual funds

2. I just started a new job that brings in about 2000 a month, BAH for going to school 900, and disability 1800 (monthly)

Options

1. Take a loan out on my mutual funds at a 2% interest rate (which has tax loopholes) and use the liquid cash for emergency fund or to rehab the house. 

2. Use the VA loan with no money down and throw money at it while i live in it (interest rates are low right know so idk about this option)

3. Put my liquid cash down as a down payment 

I'm trying to get the most out of what i have to propel my real estate investment. Thank you for any advice you guys have to offer.

[Doug Spence]

@Peter Wellman Thanks for your service. I'm active duty Navy and do real estate on the side. My wife and I just did a house hack with our VA loan in San Diego and I recommend that same strategy for you based on your situation.

I would purchase a 2-4 unit property using your VA loan, live in one unit and rent out the others, while you save up money for your next purchase.

I'm happy to chat more about my experience if you want. 

Good luck and keep us updated on your journey.