Hello everyone,

I have an opportunity to purchase 2 duplexes (4 units) right next to each other in a very desirable location. I initially tried to purchase them using separate loans for my wife and I. Unfortunately the banking company w were going with (USAA) decided to not go through with both loans the day before we were initially scheduled to close on the properties. Their reasoning was that we wouldn't meet the VA occupancy requirements. Even though we agreed to live separately.

Fast forward a few days and we found a local loan officer with a local bank. We have secured on VA loan for one duplex and are in the process of securing a 20 year amortized loan that would balloon every 5 years. Also the seller ( who owns all 4 units) has agreed to carry back the 25% on one duplex, which we would have to pay off in 5 years.

My question to the forum is, are amortized balloon loans a good route to take in order to get into the real estate investment arena? Are there other avenues I should look into before going this route? 

After crunching the numbers, even occupying one of the 4 units, there will be slight cash flow, compounded by the fact that we will be able to save significantly more than we are now because each unit will cover a little over half the mortgage. 

Thank you in advance for any information you are willing to provide.