Advice for first rental property
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.
Most Popular Reply
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.