Properties I might need help with

[Eric Espinoza]

Good Evening, 

Currently, I am trying to find a multi-family (up to 4 units only) home so I can rent it out. I'm looking in the San Antonio/Austin, TX area (or anything in between). I plan to use a VA Loan. I found 2 Duplexes I really like. One is listed for $640000 and the other is listed at $415000. Both are 3bed/ 2.5 bath in different areas of San Antonio. The one listed at $640,000 is 10 minutes from downtown so it's in a great location. The area is not so great, on crime grade it got a D. Supposedly, the area is being gentrified, according to my real estate agent. the Projected rent is at $2500 (although I have no idea where they are getting that number). The house really is very nice though. The $415,000 property is also in San Antonio, but the area is a bit nicer and it was graded at a C- on Crime Grade. Not sure what the projected rent is. Please understand that I plan to live in one of the units. However; I plan to Air B&B my side, because I travel a lot for work. Generally, I am home 15 weeks out of the year. I used the Rental property calculator for both of these properties and it appears that they aren't worth it. The reason I am considering these 2 properties is because they have potential to be worth a lot more in the future. With rising Interest rates, deals seem to be dwindling. If anyone could help me try to figure out if these properties are worth it. Maybe I'm not using the rental property calculator correctly? Or maybe my mindset isn't worth it? Either way, any help would be appreciated.

[Loren Polito]

Quote from @Eric Espinoza:

@Loren Polito, are VA Loans approved for these properties? Also, are there any stipulations on Air BnB in those areas? I know in some neighborhoods HOA won't allow it. Not looking for any specific areas in San Antonio, I'm not overly familiar with the city. I just really like San Antonio. My job's main office is in Austin, but it's too expensive out there.

Yes, you can use a VA loan on up to a 4 unit property as long as one of them is used as your primary residence. I will have to check if they allow Airbnb’s on this duplex but I would assume so.