Military* Should I wait to PCS to invest in rental property.

[Daniel Bautista]

Just purchased my 2nd home in Colorado last Fall 2018, I didn't keep the first one in order to use the proceeds to eliminate debt and use fund for down payment to attain a lower funding fee. Now I am in the process of VA IRRRL REFI, in order to 1. lower interest 2. Remove the VA owner occupy stipulation.

My realtor explained I can not use a FHA loan as it has occupancy requirement and conventional loan is about my only option which would require 15-20% down.

I would like to purchase a second home as a rental property. My funds are limited however, local banks and Credit Union like Navy Fed offer; Zero down, no PMI for members called "Military Choice", these have higher interest rates advertised for example rate of 4.5% but with funding fee 1.75%, origination fee 1%, .5 of a point. They also offer Conventional Loans with no PMI and lower rates but a 5% down requirement. Which is a better deal or does it not big difference in short run.

Is it advisable to with these numbers to start looking for a property or wait until I PCS and use my existing home as rental property when I move?