Posted about 1 month ago

The Most Misunderstood Benefit in Real Estate: The VA Loan

If you ask most investors what loan product they wish they had access to, the answer is almost always the same: the VA loan.
Zero down, competitive rates, no PMI—it sounds like an investor’s dream.

So why is it also the most misunderstood benefit in real estate?

As someone who has guided 1,500+ VA home purchases and helped countless military families build wealth through PCS moves, I can tell you this:
Most people—agents and investors included—use the VA loan like a simple homebuying tool when it’s actually a long-term wealth-building strategy.

Let’s break down why investors underestimate it and how to use it to your advantage.

Why Investors Underrate the VA Loan

1. They believe the VA loan “can’t be used for investing.”

Technically, the VA loan requires the buyer to occupy the property.
But here’s what most people miss:
The VA loan can be used to purchase 1–4 unit properties.

You can:

Live in one unit
Rent the others
Reduce or eliminate your housing costs
Build equity with someone else’s rent

Most investors don’t realize this is allowed—or how powerful it is when repeated over multiple duty stations. Once it goes to 5 units, though, it's a completely different ball-game, and the VA loan cannot be used for this. If you're seeking 5+ units, pop me a message with your super rough paper napkin business plan, and I'll help point you in the right direction for next steps.

2. They misunderstand the VA occupancy rule.

The VA’s requirement is simple:
Move in within 60 days and intend to live there for at least 12 months.

After that, you’re free to:

PCS
Convert the property to a rental
Use your VA loan again (if entitlement is restored or remaining entitlement allows)

This is how many military families quietly build multi-market portfolios without ever saving for a down payment.

3. They think zero down = risky.

Zero down does not mean low quality.

In fact, VA loans have:

One of the lowest default rates in the country
Strong underwriting standards
Exceptional rates because the government backs the loan

For an investor-minded buyer, zero down simply means:
You keep your cash for reserves, renovations, or your next property.

That’s smart leverage—not risk.

How to Use the VA Loan Strategically (Not Emotionally)

1. Buy where the math works, not where the military sends you.

Not every duty station is an investment opportunity.
But many are—and the ones with strong rent-to-price ratios create ideal long-term hold opportunities.
You can't use the VA loan if you will not be occupying the property--so this isn't a strategy for living in one area and buying in another; however, there are a few nuanced exceptions to this, such as geo-baching/ buying during a 365 remote. Pop me a message if you think you may fall into a nuanced situation, and I can help you figure it out.

2. Run the numbers as if you weren’t going to live there.

Ask:

Will this cash flow when I leave?
Can I raise rent to market levels?
What’s the long-term demand?

PCS moves create urgency.
Numbers remove emotion.

3. Think in terms of a portfolio, not one home.

The VA loan can be:

Used multiple times
Layered alongside conventional and portfolio loans
Part of a PCS-based acquisition strategy

My family used our PCS cycles to build a portfolio across multiple states—and the VA loan was the cornerstone of that growth.

How the VA Loan Built Our Wealth

My husband and I bought our first few homes with the VA loan during his military career. We:

House hacked
Bought in strong rental markets
Converted each PCS home into a long-term rental
Used our zero-down advantage to conserve cash
Leveraged appreciation + rent increases across multiple moves

The VA loan didn’t just help us buy homes.
It helped us build financial independence.

And it can do the same for thousands of families—once they understand the strategy behind it.

Final Thoughts

When used wisely, the VA loan is not just a benefit.
It’s a once-in-a-lifetime investing advantage.

Most investors will never have access to something this powerful.
If you do, use it with intention.