Advice for first rental property

[William King]

Hello, i am new to bigger pockets and heard this is an informative site with lots of good information. so i am a USMC veteran and have a disability rating. i currently don't have a W-2 job, but go to school and the VA pays me to do so. i have about 20k saved and have a heloc with a limit of 70k. I feel like my options are limited since i don't have paystubs to prove to a lender. Is this correct? Has anyone ever got a conventional loan using only VA income? if not then i will continue to look for the houses that need complete restoration under 50k. thanks ahead.

[Antonio Holt]

You’re thinking about this the right way, and I want to reinforce a couple of things that will save you years of pain.

If you’re planning to be an investor, buying low AND at a discount is the best play. Appreciation and principal paydown are bonuses, not a strategy. You need margin on day one.

This is where DSCR loans actually work in your favor. Conventional loans aren't where it's at for investors. DSCR forces discipline — the deal has to pencil based on the property's income, not your personal income. If it doesn't cash flow on paper, it simply won't qualify. That's a feature, not a problem.

Your setup is more workable than you think:

Your HELOC can cover the down payment

Your $20k can cover reserves and early payments

That puts you in the game if you buy correctly

I’d be targeting properties with ARVs around $140k–$160k. That’s the sweet spot for:

DSCR lenders

Insurance and taxes

Manageable rehabs

Reasonable tenant demand

I’d avoid full gut rehabs under $50k for a first deal. Rehab risk explodes fast, especially without experience. One bad contractor or delay can wipe out your margin.

Also, one thing that doesn’t get said enough:

Even after training, every tenant will still teach you a lesson.

Training reduces damage — it doesn’t eliminate lessons.

That’s why buying at a discount and keeping reserves matters more than being clever.

Bottom line:

Buy discounted

Let DSCR filter bad deals out

Focus on value-add

Keep margin

Expect to learn anyway — just make sure the lessons are affordable.

You’re not behind. You just need to play the investor game, not the bank’s game.