Strategy Check: VA loans to build portfolio

[Tyler Thompson]

I'll be a VA loan-eligible buyer by 2027 and am working on a real estate strategy and would appreciate feedback from anyone who's taken a similar path. I also have a unique opportunity to buy a home w/ADU at 3.5% in the next few months and I'm going to take it

My Plan:

2025: I have the opportunity to purchase a ~$600k home with a loan at 3.5% with my LLC, and house hack. (It's a very unique circumstance, but an opportunity I don't want to miss out on) 2027: Buy a second home (~$1M) using VA loan. Live in it as my primary residence and rent out first.
2028: Refinance my 2nd property into a conventional loan to free up my VA entitlement and convert it to rental. I would then purchase a new primary residence with the VA entitlement. I would also want to take any extra money from the refi to buy a multi-family property.

I'm debating moving the homes I refinance to my LLC that I purchase my first home with.

- Has anyone successfully used VA loans as a stepping stone to building a rental portfolio? What were the key challenges?
- ⁠What should I know about refinancing out of VA loans into conventional? (Credit requirements, equity needed, timing considerations, etc.)
- ⁠Any pitfalls with transferring VA-financed properties into an LLC? I’ve heard lenders can call the loan due if done improperly.
- ⁠Does this timeline seem realistic, or am I underestimating how long each step takes?

I’m still in the research phase, so any real-world experience or resources would be hugely appreciated. Thanks!

[Elealeh Fulmaran]

Smart ladder. Lock the 3.5% house hack now, but take it in your name unless the lender explicitly allows LLC; it keeps future refi options wide. Use the VA in 2027 only if you can truly occupy, then plan a rate‑and‑term or cash‑out into conventional once you've got seasoning, strong credit, and an LTV target that avoids heavy pricing hits. Don't deed VA‑financed properties into an LLC without lender consent due to due‑on‑sale risk. Timeline is doable, but pad months for occupancy, seasoning, and appraisals. Next step: map each loan's occupancy and seasoning rules, then get three quotes for the 2028 refi path so you know the equity and DSCR you'll need.