HELOC vs. VA loan? (Or both?)

[Mario Manjarrez]

Hello Bigger Pockets!

I'm currently active duty military stationed overseas. I'm moving to a more permanent position as a guardsman in Arizona in the fall. My wife and I have saved a pretty good chunk of change, and we're planning on purchasing a multi-family in order to house-hack. My parents are investors and they've agreed to let us use a property to obtain a HELOC. My question is should I use my VA loan to purchase the multi-family? My mortgage would be higher since I wouldn't have to put a huge amount down, but I would have to utilize the property as my primary residence for at least a year. If used the HELOC, I wouldn't have to and I could potentially rent both units out. Any advice?

Thanks in advance!

[Jonathan Balascsak]

Hey Mario,

I think it would ultimately come down to if you want to live in the property. If you house hack the multifamily you can keep your overseas cash and the option for the HELOC and be quick to get a second deal started. Plus if you hack your BAH while your in the multi you save a ton of cash for the next deal. Just make sure when you analyze your deal make sure you add the VA funding fee.

Good luck,

Jonathan