Financing for first house hack while in the military

[Cameron Hodge]

Hello all! I am an aspiring investor currently in the military and stationed in southern California. I have an upcoming deployment and am pushing back my plans currently, but I am looking for help on what my best options are for financing upon my return next year. For my wife and I, I want to purchase at least a duplex but a triplex would be all the better, I am looking for insight into whether I should apply for a VA loan, standard finance options or possibly for private financing in regards to turning around shortly for another property and the general market of SO CAL.

[Andrew K.]

Cameron Hodge welcome to BP and thanks for your service. Good luck on your next deployment.

You're on the right path with weighing each of your financing options. Take a hard look at your own finances as well. Can you afford up to a 20% down payment-certain loan products may require it. As you know, VA loans typically require much lower fees. Although you'll want to educate yourself on how man VA loans you can have at one time and what the total lending amount is--very easy to about on their website.

Once you find the deal, analyze the property using the buy and hold calculator here on BP. Plug in the different financing options your considering, account for the numerous expenses with rental property, and you'll have a better idea which financing package to use.

In fact, spend as much free time as you can on your deployment educating yourself about your market and analyzing deals. Once you return you'll have a much easier time recognizing a deal.

As you know, there are a ton of benefits to house hacking with a small multifamily. Good luck and keep us posted on your efforts!

Take care.

-Andrew