VA Financing Approved, Struggling with direction and numbers

[Robert Aydelott]

Hello Everyone,

I've tried to do as much research as I can before posting, so please excuse me if I've made a discussion in error. 

I'm looking for advice and direction in the Denver Market.

The numbers:

VA Financing Approved @ 425,000 4.6% w/ 0 percent down

Cash I am comfortable using for rehab/down payment etc: $15,000

Current Gross income after all expenses including rent, retirement, gas etc: $4,000

I am currently renting a one bedroom w/ my girlfriend and splitting the rent $600 each. I would like to start my foray in to REI, by purchasing a home, that if need be I could move out and rent it out with Positive Cash flow. The benefit of the VA loan is, I can purchase this first home, and still have a significant amount left in cash to begin saving for a second. I have been running the numbers on home after home, and I cannot find a home that would reasonably produce Positive Cash flow. I would like some opinions/advice on the following:

Should I buy elsewhere, for solely rental income and continue to rent for myself?

Should I save more, continue to rent, look for a dump, use conventional financing and buy and rehab?

Am I not looking hard enough/the right places for deals?

Any advice is welcome. Thanks!