Reusing the VA Loan Dilemma

[Kahleb Kelsey]

Hello all!

My name is Kahleb Kelsey, and I am currently in the Vacaville area in California, just north of the Bay Area. Before we jump into my dilemma here's some background info. When I arrived here I used my VA loan to purchase a duplex that I have been househacking since. I recently used the equity from this crazy market to refinance out of the VA loan and into an owner-occupied conventional loan with the aim of reusing the VA loan to purchase another multifamily property.

Here's where the dilemma begins.

It seems like every month that goes by makes it harder and harder to afford some of these properties, so I would like to jump in and hedge against appreciation and inflation, but I am unsure how. There are next to no opportunities to purchase multifamily properties in this area. They are few and far between, and when they do pop up, it is difficult for VA financing to compete with the other offers in this competitive market. The best case scenario for me would be to purchase duplex-fourplex within the next couple months, but that's beginning to seem like a pipe dream. Another option would be to purchase a single family home with the VA loan that doesn't cash flow with the aim of holding it and banking on appreciation and rising rents, but that seems exceedingly risky in this volatile market.

Thank you for any and all input!

Kahleb Kelsey