G.I. Bill Investing w/ VA Loan (Portland, OR)

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G.I. Bill Investing w/ VA Loan (Portland, OR)

Benjamin Kirkpatrick
New to Real Estate · Portland, OR · Member since 2018 · 11 posts · 6 votes

Hello all,

Just wanted to post on here to get some feedback from the community.

So, I'm currently living in Portland, OR and attending school full-time using the G.I. Bill. I receive a monthly housing allowance (which technically doesn't count as earned income) and am working part-time.

My goal is to purchase a property within the next year or less (preferably multifamily or single-family) using the VA Loan. Ideally, I'd like to implement the BRRRR strategy or house-hack to live for free (or as little as possible) throughout college. Then, as time progresses, purchase another property and so on.

Anyhow, my original plan of applying for the traditional VA loan isn't quite feasible, since my housing allowance doesn't count as earned income.

I'm just curious, what would you do in this situation?

I've considered getting a full-time job in order to have proof of income for loan approval purposes, or utilizing an FHA loan or some other strategy to get into the game. Likewise, I've thought about teaming up with a friend to pool money together for a down payment, but that could take awhile.

P.S. If anyone is in the Portland market/surrounding area, I'd love to get to know you and help out any way possible. Just looking to provide value and connect with like-minded individuals!

Thanks in advance,

Ben

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Joseph Crunkilton
Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
6y

@Benjamin Kirkpatrick

Have you considered out of state? The returns you can get are great and they're much more affordable. I use a turnkey provider (Rent to Retirement) who is able to provide high quality rentals at good prices. The returns are very good for being low risk investments. 

@Zach Lemaster is the man in charge and a great resource for any investor. 

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  • Mark H. Porter
    Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
    6y

    First talk to a lender, they may surprise you.  Go for a 4-unit and live in one.   for a new investor, More units = less risk.  I did it twice and it worked out great.

    0Reply
  • Robert Bowles
    Lender · Portland, OR · Member since 2013 · 88 posts · 38 votes
    6y

    Your income will be your biggest hurdle.  Most lenders will want to see a 2-year employment history (part-time and/or full) to use the income.  But a lender can use past employment, training, and/or education to show particular skills that relate directly to the duties of their current position.  

    Using multiple units will also help as @Mark H. Porter suggested.  You can use the rent to help you qualify.  

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  • Chad Duncan
    Rental Property Investor · Portland, OR · Member since 2015 · 85 posts · 49 votes
    6y

    I did exactly what you are trying to do. However, I had the benefit of VA disability and working which barely made my income feasible to take out a VA loan for the duplex I now own. I don't know if you have checked in with the VA and tried getting a disability rating, but its worth a shot and I recommend every veteran go through that process. As well, look into banks/credit unions that tailor to Veterans, these can be a great source of financing.

    Investment wise, house-hacking is still viable in Portland but you will have to have quite a bit of capital to make it work well. I believe most loans will put you at 20% down in this current recession (not quite sure with the FHA though). Something worth considering is to invest in an SFH with ADU potential, as the Portland Residential infill project might make it possible to have two ADU's per property in the future.

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  • Daniel K. Kim
    Rental Property Investor · Portland, OR · Member since 2017 · 9 posts · 2 votes
    6y

    I thought the exact same strategy. I wanted to get a duplex here in Portland, OR as well. Currently, I go to Portland State and work part time. The income IS the biggest hurdle to get a home loan like Robert said. Eventhough I do earn enough to cover a new mortgage payment of $1800, there is no lender who accepts my housing allowance as an income.

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  • Joseph Crunkilton
    Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
    6y

    @Benjamin Kirkpatrick

    Have you considered out of state? The returns you can get are great and they're much more affordable. I use a turnkey provider (Rent to Retirement) who is able to provide high quality rentals at good prices. The returns are very good for being low risk investments. 

    @Zach Lemaster is the man in charge and a great resource for any investor. 

    4Reply
  • Benjamin Kirkpatrick
    OP
    New to Real Estate · Portland, OR · Member since 2018 · 11 posts · 6 votes
    6y

    Wow, thank you everyone for the responses! I definitely need to get on here more often (especially after I start a discussion and create a thread, haha). 

    Anyway, I'm not quite sure how to reply to each one of you individually, so here goes:

    @Mark H. Porter - Thanks for the insight! Ideally, multifamily would be my preferred method. Live in one unit, rent out the other 2 or 3. 

    @Robert Bowles - Yep, that's what I'm working around right now. Doesn't help that my military service and part-time work doesn't necessarily coincide with my current field of study. Ideally, I'd like to transition into a job that ties in with my degree so that way I can then combine the education + work experience for a total of 2 years to qualify.

    @Chad Duncan - Wow, I'd love to hear how you were able to make everything work. I actually applied for disability and have an appointment scheduled next month (I also wouldn't mind some advice on that process too, haha!) As far as the ADU's go, I have been reading a little about them, but don't know too much. I'll definitely do some more research.

    @Daniel K. Kim - What a small world! I'm actually going to PSU as well. I'll go ahead and shoot you a message!

    @Joseph Crunkilton - Yes! I am not 100% committed to Portland, and have actually been looking at different areas to move to after college. This is just where I'm at on the map right now. As far as investing out-of-state goes, I'd have to read up a bit on it, but it also seems like a feasible option (plus I'm sure there's tons of resources here/online for that).

    Again, thanks everyone for your responses! I truly appreciate it.

    -Ben

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