Hi everyone. I'm in need of some advice please. All help is much appreciated

[Michael Dunn]

Here's my current situation......I have close to $7,500 saved up for a downpayment / to fund some of the needed repairs on the property that I " hopefully " eventually purchase. I know that's not enough money for a 20% downpayment, especially on a decent house that would be sufficient as a Rental in the near future. I am former military, I qualify for a VA backed loan, which from all my reading and research, would be my cheapest route in terms of purchasing a house, while allowing for the least Downpayment required ( 2.25% Funding Fee ).

The thing is, I want to buy a property on the front end as an Investor " Investment Property ", instaed of an Owner Occupant, so that I can get in there and do a few upgrades, new flooring, new paint and get it on the market and rented as soon as possible. I live in the Memphis,TN area and right now, it is a pretty robust enviroment for Investors to Flip and to buy and Rent properties for Cash Flow. In the Midtown region of the city, This area is a highly sought out area to buy and rent in. Homes average at the low end, around $160,000.

The kicker is, alot of the houses in the area were built in the early 20's ( 1922 ) . And quite a few of them have Detatched living quarters ( they're listed as Multi-Family or Du/Tri-Plex ). My thinking is, If I go the VA loan route, It will qualify as a Multi-Family residence , and I could live in the Main house, and rent out the Detatched living quarters, for a price that will cover the note on the actual house itself. I technically don't want to live in the house that I purchase , but if I had to, I want to have my note being paid for me. Im planning on getting a REO or purchasing a house that has been on the market for a considerable amount of time / 90+ days so that I can get one at below market value, and have instant equity in it, then do a Cash-out refi , after I have lived/owned the property for the 1 year that is required. Then use that money to purchase the next rental property, repeat cycly.

Anyways, sorry for the long and drawn out message lol I've talked to a few lenders in my area, and have narrowed down what I qualify for, I just need some quidance as to what my next step should be. I have a credit score of 660 if that helps. Thanks again Everyone, Much appreciated - Michael Wanted to add: I mentioned that the houses were built in the 20's, in the area that I'm looking to buy in. I read that the VA and FHA have strict guidelines as far as not letting you Close on a property that needs HVAC, roof repairs, etc... And this is the kind of work/repairs that I want to do myself. So that's why I'm leary on going with one of these types of Loans. I looked at Fannie Mae's HomePath Renovation loan, that requires no Inspection, which is more what I'm looking for, but then I run into having to put more down on the front end ( 5% down for Owner Occupy or 10% down for Investor. Although, I think that has gone up to 15% for Investors )