I am currently stationed in Augusta, Ga where cost of living is super cheap and the area is growing decently. I have a remainder of 1 year and 5 months left here, that being said, with a VA loan I would have to occupy the home for a full year which means I really have 5 months to purchase a property. Ideally I would want to purchase a multi family home but there aren't really any in the area due to how cheap it is to live here. anyway, I intend to be stationed in either Hawaii or San Diego next which obviously isn't somewhere I, as a beginner should start investing. I am currently rooming with someone and I am pocketing about 700 dollars every month due to BAH (aside from my regular pay). I have considered buying a home here and renting out the bedrooms while being here to make some profit but also to rent out the house after leaving this place. My question is whether i should take advantage of the buying opportunity with having 0 down with the VA loan to purchase a house here OR if I should continue to save in my current position and while being in Hawaii or SD (if all goes well) and eventually buy a property out of state using a FHA loan. Any advice ? Keep in mind I have no idea what i'm doing. Thanks!
@Gabriella Woods the best thing you can do is purchase a great 2-4 unit in San Diego or Hawaii...you would really get the most out of the VA loan. You can even buy 2-4 unit property here in San Diego with VA loan without putting a penny into the deal and having tenants cover most of your mortgage, if not the entire amount. FHA loan is an owner occupied loan as well so it can't be used to purchase property out of state unless you plan on moving into it within 60 days of closing on the property.
First use your VA loan to purchase an owner occupied multifamily, ideally a 3-4 unit before considering any other type of property or loan.
@Twana Rasoul Thank you for the response! and yes, see that is actually what i was planning at first once i started getting into all of this but i honestly scared myself into thinking it was too risky to buy such an expensive property for my first one. it definitely still crosses my mind because i will be put at an advantage of finding tenants consistently with active duty members constantly needing housing in that area. It’s the fear of not having a tenant and needing 2-3k for every month it’s vacant that steered me away from it.
@Gabriella Woods totally understand the fear....if you make it out here instead of Hawaii I can introduce you to a dozen individuals or so that I have helped in the past few months do exactly what I explain above (purchase 2-4 unit property with VA loan). I just got another 4-unit into contract for a 22 year old marine who will be living in one unit and renting out the other 3 units to get just about his entire mortgage covered and he won't be putting a penny down, not even for closing costs.
@Twana Rasoul That would be wonderful, we will have to see where I end up! Thank you, I greatly appreciate it.
@Gabriella Woods my suggestion to you is to buy where the numbers make sense. Whether it be Georgia, California or Hawaii. Hawaii is a very high cost living area and California isn’t much better. Ask a couple people what their experiences are, how their numbers look and go from there.
@Gabriella Woods and remember. Just because a VA loan requires a 0% down payment, you still have to pay closing costs.
@Gabriella Woods If you shop mortgage folks a little bit, you can find one that will work with you on a VA Loan and you don't REALLY have to move into it. I'm in Greenville, SC. PM me if you want a name to talk to.
@Raymond J. Rodrigues I think you are probably right, I haven’t dived into analyzing the numbers too much yet which I need to do. Thank you for the response! and talking to others to see how it’s worked out for them is a great idea. thanks again!