Purchasing with a VA loan to eventually rent

[Jesse Streng]

I currently own a home in the Phoenix area with a VA loan and no money down. With a va loan you have to use it as your primary residence for at least 1 year. I am coming up on my 1 year mark in the home and am thinking about buying another home with a VA loan and renting my current home out. What is everyone's opinion on this?

This would be my first rental. My concern is that I am starting out with some slight negative equity in the home because they finance the VA loan funding fee into the mortgage. Is that a rational concern? I know I can get about $100 more than my Mortgage payment in rent so I wouldn't be cash flowing anything but I would be building equity at least. Are there any other factors that need to be considered?