All Forum Posts by: Duane A. Snow

@Duane A. Snow
Hi! Thanks for reaching out. I'd be happy to connect you with a VA-friendly lender who can work with your eligibility, no PMI, and 0% down. I'll look into options in Wisconsin and get back to you shortly!

Sending a DM

@Duane A. Snow the short answer, yes.

The VA guidelines say you need to have prior landlord experience in order to use rental income towards qualifying. But what they don't say, is that there is a workaround for that. If you hire a property manager, that counts as your landlord experience.

Also in order to use rental income, you are required to have 6 months of the mortgage payment in reserves. Maybe that's what you are referring to about the $10K? But the reserves don't need to be liquid, you can use retirement funds, stocks, etc. And you can also use seller credits to have $0 cash to close, so that all of your funds can be used as reserves, and you don't need anything out of pocket for the entire transaction, you can even get your earnest money back.

If you need any help navigating all this and making this a reality for you, feel free to reach out. I've been doing this for 27 years, I specialize working with newer investors and house hackers, and I teach VA lending.

TYFYS and best of luck!

Start by talking to a bank to find out how much you qualify to borrow.  For rental properties, you are going to need 20% down, so $10K is unlikely to be enough in most areas.

As for what to buy-you mentioned selling your house-where are you going to live now?  If you haven't bought a place, why not look at a duplex or a place with a legal suite where you can live in one part of the property and rent the other part?

Look for a good place-somewhere you'd feel safe living.  Don't buy the cheapest place as on paper it may look great, but in reality you will have higher turnover, lower quality of tenants  and more problems-plus it won't appreciate in value as much.

@Duane A. Snow Milwaukee is a great market to invest in. There is a great selection of SFR's and MFR's. I'd say consider split testing the SFR and LTR approach. You can try this with a duplex. Location will matter oncourse so be mindful of that. Is your strategy more monthly income focused or appreciation?

I gave a presentation on this exact topic at the Rental Property Association of Wisconsin Annual Convention last year, and the key takeaway was that all rental strategies have their merits, but you need to know what you’re signing up for. Some can be passive investments, while others are full-fledged businesses.

Long-Term Rentals (LTRs) are the best starting point for most investors because they offer consistent income, lower management demands, and a truly passive approach. A 12-month lease means stable cash flow, fewer turnovers, and minimal involvement, especially if you use a property manager. Financing is also easier since lenders prefer predictable rental income over the fluctuations of STRs or MTRs.

Short-Term Rentals (STRs) and Mid-Term Rentals (MTRs) can be lucrative but require more hands-on management. STRs, in particular, are closer to running a hospitality business than a passive investment, with constant guest turnover, cleaning coordination, and regulatory risks. MTRs fall somewhere in between but still require furnishing and active tenant acquisition. If your goal is long-term wealth with minimal effort, LTRs are the best place to start, allowing you to scale without making real estate your full-time job.

I have a property in Janesville that is set up for STR/MTR as well as a portfolio of long term rental properties. STR/MTR does OK. I don't recommened MTR being your only plan in Janesville. Plan to serve travelling nurses didn't really work out after Covid and we pivoted to STR to keep the cash flow going. I think Janesville is a great long term rental market.