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Updated almost 4 years ago on . Most recent reply

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Christopher Beasley
  • Oklahoma City, OK
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Help starting investments using VA loan

Christopher Beasley
  • Oklahoma City, OK
Posted

So I have access to a VA loan. I am preapproved for up to $350k. My plan was to purchase a single family home or duplex, live in it for a year and while living in it paying 20% equity, after a year refi to a conventional loan and use my VA to move into the next house. Rinse wash repeat.

I can afford to purchase a 150k house, and have 20% equity ($30k) paid in it within a year and refi. The problem is right now in our market I search zillow for 150k houses and my mortgage after refi would be around $850 and I can't find houses that would rent for more than $1200 based on zillows rental estimator.
 Learning about the 1% rule I can't find a house that fits it. 
I have asked 2 real estate agents to help me find a duplex within 100 miles of where I live that has 1 side as vacant and costs less than $350k both have said there isn't much. If I happen to find a duplex, I don't know how to estimate how much rent one side would generate. I would need it to generate atleast $1500 to be able to use my disposable income to pay down the mortgage's 20% $60k in 2 years, to refi and purchase my next investment.

If anyone has a better strategy, my current information is that I have $3300 disposable income a month. I have access to a va loan which allows for $0 down. I must live in the property for a year. My family is ok with moving yearly for 7 or 8 years to build up a portfolio. 

Most Popular Reply

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Patrick Drury
  • Real Estate Agent
  • Columbus, OH & Cleveland OH
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Patrick Drury
  • Real Estate Agent
  • Columbus, OH & Cleveland OH
Replied

@Christopher Beasley
You should look at duplexes that have tenants in one of the units with a month-month lease. You could give them a 30-day notice and move in. That might expand your search some. Also, ask your agent to supply you with some rent comps. If they work with investors, that should be fairly easy. Lastly, I am not familiar with the market, but maybe your cash flow expectations are just not realistic for that market. 

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