New Rental Investor in Wisconsin

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New Rental Investor in Wisconsin

Rocky Jones
Madison, WI · Member since 2016 · 13 posts · 3 votes

Hello, I've been listening to the podcast for awhile now and am getting the cogs going on acquiring my first multi-family four-unit in the Madison area. Definitely more questions to follow. I'll likely be using a VA loan to help with the no/low money down plan to start.

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Timothy Granzow
Hartford, WI · Member since 2016 · 1 post · 1 vote
10y

Hi Rocky, 

Like yourself, I am looking at investing in rental properties in the southeastern Wisconsin area. I am looking closer to the Milwaukee market, though, Waukesha, New Berlin, Brookfield, etc. I am actually also looking into doing a multi-family home. 

Also, I am actually looking into using the VA home loan to purchase my first multi-family property. I believe you will need to do a house hack if you want to try to utilize the VA home loan, as it is required that you reside at the residence for a certain amount of time.

I am not positive you can use the VA home loan for a multi-family unit, this is something I still need to look into. I wouldn't see why not, but I know there are a lot of limitations and stipulations on the VA loan.

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  • Timothy Granzow
    Hartford, WI · Member since 2016 · 1 post · 1 vote
    10y

    Hi Rocky, 

    Like yourself, I am looking at investing in rental properties in the southeastern Wisconsin area. I am looking closer to the Milwaukee market, though, Waukesha, New Berlin, Brookfield, etc. I am actually also looking into doing a multi-family home. 

    Also, I am actually looking into using the VA home loan to purchase my first multi-family property. I believe you will need to do a house hack if you want to try to utilize the VA home loan, as it is required that you reside at the residence for a certain amount of time.

    I am not positive you can use the VA home loan for a multi-family unit, this is something I still need to look into. I wouldn't see why not, but I know there are a lot of limitations and stipulations on the VA loan.

    1Reply
  • Michael Henry
    Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
    10y

    Rocky and Tim,

    VA Loans can be used to purchase multi units properties (2, 3 and 4 units) as well w/ the stipulation that it must be owner occupied. I know the Milwaukee and surrounding Metro areas well please feel free to reach out anytime. I also appreciate both of you for your service to country.

    Thanks,

    MH

    1Reply
  • Daniel HymanBusiness Member
    CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
    10y
    Welcome Rocky Jones and Timothy Granzow Great to have you on BP!
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  • Svetlana Foley
    Realtor · New Berlin, WI · Member since 2016 · 118 posts · 47 votes
    10y

    Are you thinking of using VA loan to save on downpayment? Yes, you can use it for multi, as long as it will be owner-occupied, but most vets do not realize how expensive VA loans can be. For starters, you are hit with 3.75 or higher funding fee, and there is a requirement of setting aside months worth of escrow prior to closing, which when you take all into account, may be close to an FHA downpayment of only 3.5%. With FHA or conventional you can also take advantage of a number of programs such as dreamhouse from US bank which will reduce your dp to less than 3.5 and your loan costs overall significantly. Go talk to not one, but multiple lenders, and make sure that YOU ask about all the costs involved, lenders are typically not very forthcoming about that until you are "hooked".

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  • John Burtle
    Real Estate Broker · IL · Member since 2016 · 284 posts · 178 votes
    10y

    Welcome!

    0Reply
  • Rocky Jones
    OP
    Madison, WI · Member since 2016 · 13 posts · 3 votes
    10y

    I'm definitely with you on the long-term "extra" costs with VA loans. If I use this kind of loan, it would be to exploit the zero down payment and maximize using "other people's money" for an investment property. That said, I'm having a tough time finding a four-unit for at or below $400,000 (close to the VA limit) that I would also like to live in for a year. Maybe I need to look at triplex or duplexes instead? Or maybe just give up on the VA loan and use other funding so that I don't have to occupy it.

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