VA loan usage

[Brandon Walters]

Hello, I am a 25 year old Lieutenant in the Army. I am currently located at Fort Hood, Texas and own a single family property in Temple, TX (used the VA loan to acquire it). I recently got back from deployment, which gives me the opportunity to utilize my VA loan again on another property. This time, I want to buy a duplex and house-hack it while renting out the single family home, managing the properties myself. There are a few issues I have run into though.

1. My mortgage payment including taxes and insurance for the single family house is more than the rental comps by about $100-$300. 

2. The duplex prices are slightly inflated so if bought at market value, the cashflow (assuming I wasn't living there) would be slim or break-even based on rental comps (trying to buy in the Harker Heights area).

However, being in the military means a stable income so I will be able to eat the $100-$300 in negative cash flow, and I have enough savings to account for vacancy and repairs. I am also confident that my realtor and myself will be able to negotiate a below market price including seller credits for the duplex.

Do you guys think it is a good idea to go through with investing in this duplex? If not, are there any alternatives I should look into? Thank you.

[Henry Clark]

OP had to pull away for a second.   If you do a trailer use a lawyer to sale thru.  Sale yourself.

Realize not totally in your discretion.  Try to get stationed at higher cost areas.   Korea, Japan, Germany, Italy, Cal, NY. Not Louisiana or Georgia.

Normally a multi unit property is the traditional best way.  But not for you at least now.  

Inflation adjusted you should be worth $1.5 to $2mm by your early 40’s.  

Even today you will be past most BP posters wealth in 4 years.

When you retire join Civil Service.   Go overseas to get BAH.  Keep doing this tax free.

Your military time carries to civil service so you get a second retirement.

Not counting your military retirement and benefits you will be far past any guru or other training.

Plus your risk adjusted return is far past other investors.  Your initial money is tax free guaranteed from the federal government.     
If you pick military tenants on properties.  The military is your bill collector and other renter control.   One call to their commanding officer and their pay, training, promotions, etc are restricted until they settle with you.