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!

[Jared Bouzek]

Robert Aydelott You’re probably not going to cash flow putting $0 down. People investing in Denver struggle to cash flow putting 20% down. That’s not to say you shouldn’t invest in Denver.

The VA loan can allow you to control a $425,000 asset with just the few thousand you pay in closing costs. I just wouldn’t necessarily look at it as an investment if your taste for a primary residence is in that price range when you’re putting $0 down. Any appreciation you gain is just icing on the cake and that rate of return is pretty sweet. But this allows you to save some of the money you have to buy another property.