San Diego, CA · Member since 2015 · 13 posts · 3 votes
Hello everyone, I'm looking to gain some insight on using my VA Loan to purchase my first multi-family home here in San Diego, CA. A little bit about me, My wife & I are currently active duty serving in the Navy and just moved to the area. I am aware of SOME not ALL the guidelines regarding using my VA Loan i.e. Residing in the property for 1 year prior to selling or moving. Real Estate is something I've always been interested in and once I discharge from the service it is something I plan on doing full-time. Not to bore you my questions are simply..
Do you think San Diego is a good place to invest?
Would you recommend my wife and I to use both our VA Loans to invest vice me just using mine momentarily?
Is there anything I should know before pursuing my Real Estate Investing dream?
I would also recommend getting involved with some of the local real estate investment clubs in the area. There are several really great ones in the SD area, They are also a great source of information. You will have the opportunity to talk to active investors and get a lot of your questions answered. They are also a great source of referrals to help you build your team. I know that SDCIA, meets the first Tues of the month at the Scottish Rite. They give complementary membership to all active duty. What ever club you attend make sure it is not a pitch fest! I don't think there are any like that in the area, but beware. Good luck with your pursuits, and thank you and your wife for your service and helping to keep our great country safe!
Read, read, read, and educate yourself on whatever type of RE Investing you're really interested in. Bigger poockets is amazing for information, referrals, advice, deals, funding, whatever you need! Go to there webinars, podcasts, etc....education is key in this business!
@Jimmy Syamphone I do plan on living in one unit, it is required for a minimum of 1 year when using the VA Loan however I look forward to gaining Property Managing and Landlord experience. I'm still learning the ins and out of Real Estate so I'm giving myself a reasonable timeframe before I actually make a purchase educating myself is my first priority.
What area of San Diego would you suggest? I'm thinking near the Naval Base where I would be likely to keep the property occupied with tenants. Thanks for your reply.
@Robert Scott There should be a decent amount of multi-family properties in around a 5-10 mile radius of the the 32nd St Base area. The cool thing about SD is you can get practically anywhere around town in 20-25 minutes. I know that you're still quite a ways out from buying a property but it's always a good idea to start talks with experienced agents/brokers that deal specifically with multi-family and understand VA loan programs early so you can leverage their knowledge. They know the neighborhoods and the local markets. Make sure you find someone who will happily answer questions and give you advice and not just push you to get pre-qualified or make an offer when you're not ready.
Here's a buddy of mine, Paul Caparas, who is a RE veteran in the area. He's a cool dude and would gladly answer an specific questions you may have I wish you all the best and I want to thank both you and your wife for your service to our great nation.
I would also recommend getting involved with some of the local real estate investment clubs in the area. There are several really great ones in the SD area, They are also a great source of information. You will have the opportunity to talk to active investors and get a lot of your questions answered. They are also a great source of referrals to help you build your team. I know that SDCIA, meets the first Tues of the month at the Scottish Rite. They give complementary membership to all active duty. What ever club you attend make sure it is not a pitch fest! I don't think there are any like that in the area, but beware. Good luck with your pursuits, and thank you and your wife for your service and helping to keep our great country safe!
Welcome to Bigger pockets, and I thank you and your wife for your service.. I am a local investor friendly RE Broker... it would be my pleasure to help you find a deal(s).
@Account Closed - Congratulations on taking the plunge Robert!
I'm currently going through the process of securing a deal using a VA loan as well. I currently have roommates who are mil-to-mil and only one of them has used their VA loan the other has it in reserve for future use. That is always something to keep in mind if you need financing in the future.
Another thing is to make sure you do your research on what the VA requires and what the processes to getting approved will take. I know reading on the website doesn't give you much more than the basics. I've had a lot of success working with a Loan Officer who specializes in VA loans and she has been a godsend going through this process.
Hopefully, this helps and if you have any more questions just let me know!
Hey Robert! Thanks for your service! Multi-family housing units can be a great opportunity for a homebuyer. With a multi-family unit, the owner can rent the extra space and earn supplementary income to put toward monthly mortgage payments and living expenses.
Traditionally, the VA Home Loan program is not meant for, or can be used on, the purchase of investment property; however, multi-family units are a different story. The official definition states that, "residential property may not consist of more than four family units and one business unit except in the case of certain joint loans."
What this means is that a homebuyer may use a VA Loan on a multi-family unit, as long as the homebuyer occupies 25 percent of the unit as their primary residence.
I don't know anything about the San Diego market, but I am jealous about the weather! I am sure you will love it sure sounds great! Hope to join you in 20!
@Account Closed only use ONE VA eligibility! I am also a mil-to-mil couple. We bought one home on my VA and still have my wife's eligibility. This will allow you to buy two investment properties with little money out of pocket at the sacrifice of having to live in each place for a year. We recently were actively looking for a personal home in the San Diego, we settled for base housing. I found a great vet who works for a local lending company and his number one concern is to educate vets on VA and other loan options. If he gets your business great, if not he hopes you have learned something that will improve your financial decisions and you will recommend or return in the future. If you would like his info message me!
VA loan allows you to buy a 1-4 unit residential property. San Diego is one of the best places to use this benefits as the limits are significantly higher compared to the rest of the county.
Talk to a mortgage banker to make sure how much you can afford and then go shopping.
I absolutely love the SD area, and since I'm also a veteran itching to use my VA loan to secure a 2, 3, or 4 unit property, I hope you don't mind me following this post! Good luck!
My wife and I have both used our va loans to purchase homes, once in Jacksonville fl and more recently here in Pensacola. We didnt know this the first time we bought a house, (a friend told us about it afterward) but if you go through USAAs "relocation" program they will actually pay you to use a realtor. So when we moved to pensacola, we contacted USAA and a realtor called us the same day to help us. when we closed, USAA payed us about $500.
Idk if youre interested in that, just thought I would share. Hope your investing goes well! :)
I pretty sure there is no requirement for longevity for a VA loan. It is occupancy they are looking for. If you were to PCS 6 months after purchasing, there is no way to hold you to longevity. You must live in the property to have occupancy though, and that is the biggie they look at. If you PCS, then you can rent all units and receive a new VA at your new location as long as you have eligibility left.
I know in Tampa full eligibility for a 4-unit is 880k, nothing out of pocket. in CA you may be eligible for more due to the cost of living.
If you buy at a discount with VA loan, and fix the property up, you could REFI with the improved equity position and not have to pay PMI or 20% down. Then you could move and use your VA loan again with full eligibility.