VA Construction to Perm Decision
So I've actually found one - a lender that will do a VA Construction to Permanant loan (and VA Rehab loans to boot). Contacted multiple builders to construct a quadruplex and found a lot in AZ ready to be purchased. Please consider the following facts/figures and tell me if I should move forward:
Approx 50k for the lot near a downtown area in one of AZ's cities.
A builder willing to do the work under 200k
The lot is zoned for Multifamily residence to be constructed already.
$0 down
I'm thinking 2 1br's and 2 2br's?
Final mortgage should be around 250k @4%
Rents will be:
650/mo - 1 br's
800/mo - 2 br's
Resulting in potential rents of $2250/mo
I must occupy 1 as per VA requirements (1br)
What else must I consider since this is the first time I'm constructing a building/second time renting a property/1st time managing a Multifamily
Also, does this all sound like a good deal? Thanks