Starting out in Multifamily property investing

Member since 2020 · 13 posts · 8 votes

Hi Everyone,

I recently separated from the military and was planning to use my VA home loan to start my investment journey. I started a job that took me overseas right after I left got out of the service. I was hoping for some feedback on if I should wait till, I get back to the states and use the VA home loan to house hack a multifamily property or do a long-distance investment and use a DSCR loan. I've done some reading about both, and it seems feasible to go in either direction. While I am excited to get my feet wet so to speak, I am looking to see what feedback I can get regarding both options from the collective wisdom on these forums. I appreciate any insight and advice given. Have a great day!!

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Hamp Lee IIIPro Member

Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes

As your first investment, I recommend waiting until you get back to the states. You can use your VA loan at that time.

I'm active duty Air Force with four properties. Three are with the VA loan.

Take your time. Real estate investing is a long game.

I wish you all the best.

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Hamp Lee IIIPro Member
Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
2y
As your first investment, I recommend waiting until you get back to the states. You can use your VA loan at that time.
I'm active duty Air Force with four properties. Three are with the VA loan.
Take your time. Real estate investing is a long game.
I wish you all the best.
1 Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
2y
You should definitely wait until you get back and house hack with your VA loan. Your VA loan may allow you to do that and buy more properties at the same time, but you want to learn from your house hack first instead of trying to manage from out of the country.
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Davion Smith
OP
Member since 2020 · 13 posts · 8 votes
2y
Quote from @Hamp Lee III:

As your first investment, I recommend waiting until you get back to the states. You can use your VA loan at that time.
I'm active duty Air Force with four properties. Three are with the VA loan.
Take your time. Real estate investing is a long game.
I wish you all the best.
I appreciate the insight. When you used the VA home loan for those properties was it a hassle with the VA to keep using it on one property after another?
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Davion Smith
OP
Member since 2020 · 13 posts · 8 votes
2y
Quote from @Jonathan Greene:

You should definitely wait until you get back and house hack with your VA loan. Your VA loan may allow you to do that and buy more properties at the same time, but you want to learn from your house hack first instead of trying to manage from out of the country.
I appreciate the advice sir.
1 Reply
Hamp Lee IIIPro Member
Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
2y
Quote from @Davion Smith:

Quote from @Hamp Lee III:

As your first investment, I recommend waiting until you get back to the states. You can use your VA loan at that time.
I'm active duty Air Force with four properties. Three are with the VA loan.
Take your time. Real estate investing is a long game.
I wish you all the best.
I appreciate the insight. When you used the VA home loan for those properties was it a hassle with the VA to keep using it on one property after another?
No. As long as you have remaining entitlement, the process is about the same. Some lenders will ask for a qualifying event like a marriage, divorce, or move to another location. Some won’t.
1 Reply
Mike Hansen
Member since 2024 · 34 posts · 16 votes
2y
My first question would be how long do you plan to be overseas? Is it a term commitment or are you just employed with a company until you choose to leave or move on? The reason I ask you this is because if you're overseas for several years, that is potentially wasted time as time is the most valuable resource you won't ever get back. You can find a rental property and secure it via conventional loan or dscr, either way both you'll need around 20%, and let it do its thing until you get back stateside. You can then find a multi unit that at least has one vacant unit so you can utilize your VA loan. Now, you have an appreciated first rental that's hopefully generating cash flow, and a multi unit that provides a roof over your head and 1-3 units paying down your mortgage while all units continue to appreciate. Hope this helps and provides a different view point
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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
2y
Both options work, but it depends on your situation:
- VA Loan (House Hack): Wait to return and use your VA loan to buy a multifamily, live in one unit, and rent the others. It offers low/no down payment and lower rates, ideal for hands-on management.
- DSCR Loan (Long-Distance): Start now by using a DSCR loan, qualifying based on the property's income. It requires a higher down payment and remote management, which can be harder without a strong team.
House hacking with a VA loan is better for hands-on management; DSCR is great if you're ready to start from a distance.

From a tax perspective, if you intend to qualify as REPS or have material participation in STR, being overseas will prevent that.
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Davion Smith
OP
Member since 2020 · 13 posts · 8 votes
2y
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Davion Smith
OP
Member since 2020 · 13 posts · 8 votes
2y
Quote from @Mike Hansen:

My first question would be how long do you plan to be overseas? Is it a term commitment or are you just employed with a company until you choose to leave or move on? The reason I ask you this is because if you're overseas for several years, that is potentially wasted time as time is the most valuable resource you won't ever get back. You can find a rental property and secure it via conventional loan or dscr, either way both you'll need around 20%, and let it do its thing until you get back stateside. You can then find a multi unit that at least has one vacant unit so you can utilize your VA loan. Now, you have an appreciated first rental that's hopefully generating cash flow, and a multi unit that provides a roof over your head and 1-3 units paying down your mortgage while all units continue to appreciate. Hope this helps and provides a different view point
I am overseas for a couple more years and I considered long distance investing. I could come back tomorrow if I wanted but the money, I make is almost entirely being placed in a HYSA to earmarked for investments I want to make when I get home.

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Davion Smith
OP
Member since 2020 · 13 posts · 8 votes
2y
Quote from @Ashish Acharya:
Both options work, but it depends on your situation:

VA Loan (House Hack): Wait to return and use your VA loan to buy a multifamily, live in one unit, and rent the others. It offers low/no down payment and lower rates, ideal for hands-on management.
DSCR Loan (Long-Distance): Start now by using a DSCR loan, qualifying based on the property's income. It requires a higher down payment and remote management, which can be harder without a strong team.

House hacking with a VA loan is better for hands-on management; DSCR is great if you're ready to start from a distance.

From a tax perspective, if you intend to qualify as REPS or have material participation in STR, being overseas will prevent that.
What is REPS?
0 Reply
Davion Smith
OP
Member since 2020 · 13 posts · 8 votes
2y
Quote from @Hamp Lee III:

Quote from @Davion Smith:

Quote from @Hamp Lee III:

As your first investment, I recommend waiting until you get back to the states. You can use your VA loan at that time.
I'm active duty Air Force with four properties. Three are with the VA loan.
Take your time. Real estate investing is a long game.
I wish you all the best.
I appreciate the insight. When you used the VA home loan for those properties was it a hassle with the VA to keep using it on one property after another?
No. As long as you have remaining entitlement, the process is about the same. Some lenders will ask for a qualifying event like a marriage, divorce, or move to another location. Some won’t.
So if I use the VA home loan I can move after a year with "reason" and refinance to reuse the loan for my next property?
0 Reply
Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
2y
Quote from @Davion Smith:
Quote from @Ashish Acharya:

Both options work, but it depends on your situation:

VA Loan (House Hack): Wait to return and use your VA loan to buy a multifamily, live in one unit, and rent the others. It offers low/no down payment and lower rates, ideal for hands-on management.
DSCR Loan (Long-Distance): Start now by using a DSCR loan, qualifying based on the property's income. It requires a higher down payment and remote management, which can be harder without a strong team.

House hacking with a VA loan is better for hands-on management; DSCR is great if you're ready to start from a distance.

From a tax perspective, if you intend to qualify as REPS or have material participation in STR, being overseas will prevent that.
What is REPS?
REPS stands for Real Estate Professional Status—a tax designation that lets real estate investors write off rental losses (like depreciation and expenses) against other income, potentially saving a lot on taxes. To qualify, you or your spouse need to spend 750+ hours per year and more than 50% of your total working time on real estate activities. But if you’re overseas or not actively involved, you likely won’t meet the criteria. For remote investing, REPS might not be an option, but it could be useful once you’re more hands-on in the future! Let me know if you have any other questions!
[email protected]941-914-7779
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