Can someone help me understand a little more?!
I brought The idea of investing to my fiancé several months ago, who is currently Army active-duty at Fort Bragg, NC . I've been following along with bigger pockets over a year, done research, etc. We would like to get started soon, using the VA loan. This would be our first property as well.
First off, I am interested in buying my parents house they have been RENTING for 20 years on the dot. It is not for sale so I'd say this is a pocket listing merely because I am confident the person who owns it wouldn't mind working out some deal & selling it to me. But besides that, let's say I bought it using the VA loan & live in it (share the house with my parents) even though I would need to fulfill the occupancy requirements before renting out.. Would/could my parents continue paying rent to me?
Second, if I found a multi-unit to invest in instead, & I lived in one of the units, could I go ahead & rent or the other side/s so i would have some cash flow coming in?
Could I invest let’s say, in another state? If I purchased a duplex in another state and “occupied” the other side, what actually qualifies for living there? How do they know? & could I find a tenant to live there in one side ASAP?-until I have fulfilled the occupancy requirements (1year) & rent out the other side as well?
Thanks to anyone and everyone who reads this & would like to give any advice!!!
If you use the VA loan, you have to owner occupy for at least 1 year, YOU specifically.
if you buy a multi, you can owner occupy and rent the other sides yes.
you can't skirt the owner occupy requirement for mortgage loans unfortunately.
fort bragg is a decent place to invest, this is where all my properties are.
Everything @Alexander Felice said is true...don't try to skirt the rules, or it can really come back to bite you in the butt. If the lender finds out, they might consider you in default of the terms, and call in the loan, forcing you to immediately sell (probably at a loss) or lose the house.
I would recommend a multi-family (3-4 unit) in the Fayetteville area to start. I think there are plenty of opportunities to purchase a place that cash-flows and still stay within your budget, even with you living in one of the units.
The beauty of the VA loan is it doesn't matter how long you live in the property if you have to PCS. I bought a 4-plex, lived in it for 6 months, then got orders to PCS; nothing wrong with that. If you stay in the area, they you're held to the 1-year requirement, and can't use another VA loan unless you meet some of the specific exceptions.
I wouldn't recommend buying you parents house off-market. It won't generate nearly the returns of a multi-family, and not sure your parents would be too keen on paying market rent to you while you live there. You'll make more money renting to strangers.
@Jack P. thank you so much!
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