New Investor using VA Loan (Zero Down)

[Christopher Short]

Looking to purchase a Duplex, Fourplex, or Multi-Family home within the next 6-12 months before I deploy to EUCOM around September, 2019. Would love any advice, comments, thoughts, and concerns from any and all parties.

I am currently in the research phase of my investing career. I am reading books, listening to podcast, searching zillow, looking at houses, reading BiggerPockets, and talking to others. I am also paying off my credit card IOT help build my credit and add to my savings. I have already been pre-approved for the VA Loan through multiple banks (~$250k).

After some research into the VA Loan, I have come across a stipulation that you must INTEND to move into the property within 60 days of the closing date. Once moved into one of the units, you need to live in the house for one year (house hacking). One loophole I came across while looking at this option was that if you receive PCS or deployment orders, you may leave and break this clause (just as you can break an apartment or rental lease).

Learning more about the VA Loan lead me to the idea of purchasing my first investment rental property (buy and hold property) about a month or two before my next deployment. Purchasing a property at this time would allow for me time to move in, fix any issues, and rent out the other three units. Once I deploy I will be able to rent out the fourth unit and ideally receive positive cash flow from all four units. I plan on using a rental management company to help rent and run the property.

If anyone has done something similar to this, I would love to hear your story! I plan on doing this in Killeen, TX or greater Killeen Area.

Being a new investor and new to BiggerPockets, I would like to thank you for your time and help!

[Brian Adams]

So I ride to Killeen's rescue!

Actually, I agree with most of what has been said here. Rents have not risen significantly in a decade (although I think that will change as prices most certainly have, and interest rates are going up). I would not invest in Killeen with appreciation in mind. And it is the opposite market to Austin (although I have no vacancy issues - there are 10,000s of renters - keep your rental in average or above average and you should be able to get 5% or under).

Regarding appreciation, I recently took a look at the Killeen market since 2009. As of 2017, the Killeen price trends have actually been beating Case Shiller in spite of not suffering nearly as badly during the recession.

https://www.hoodhomesblog.com/market/killeen-home-...

Yes, moderator, I am linking to my own site, but how else am I supposed to share this information and graph?

My take on the area is that it is great for buy-and-hold (although you absolutely do want to be particular about the area) and a nice inflation-resistant asset that can actually cash flow unlike what I hear from Austin. Killeen is the biggest town between Austin and Dallas, and part of the Texas Triangle that I don't see a lot of instability in anytime soon.

I love the strategy of buying a multi-family with the VA loan, btw. I bought mine in 2012 the same way (though FHA loan because I had already used my VA loan twice) and now have $70k in equity and been cash flowing the entire time.

Might have done better had I bought in Austin in 2012, but hey, I'm not going to complain. Killeen has done well for me. And I didn't want a commute like that.