Should you buy and hold even if it doesn't generate cashflow?

[Christopher Beasley]

I am using my VA loan to purchase my first 2 properties. I'll be using my whole entitlement of $675k (based on my location), so one house will be 320K and the second will be about $320K. I plan on buying the first this year, buying the second in 2 years. I will rent the first one. Because its 0% down the PITI and the rent are about the same. I read in a book don't buy houses just for appreciation, but this is kind of what I have to do with my first 2 houses from the VA. I'd like to give them 6 or 7 years and sell them and take their combined equity and purchase my forever home at a mortgage I can afford within 25% of my income. Is this a bad plan?