Duplex Purchase Through Va Loan

[Vladimir Bercy]

Hello everyone,

   Instead of taking the route of purchasing a home with my Va Loan, I’m more interested in purchasing a duplex. I currently reside and work in Hinesville Ga and was wondering if anyone can give me some advice or guidance on what I need to do and how to go about the process. 

[Donald E Appleberry]

Hey man,

First thing is to talk with a lender. Stay away from Navy Fed and USAA. I bank with NFCU but as far as mortgages they usually don't provide the best qualification and rate. 

If you have property management experience it will make it easier for you to use 75% of the rents (typically) as income for qualifying. It depends on your lender which is why it's important that you start off by finding a good one. I have some points of contact I can give you. They may not be able to help directly, but I know they'll at least have solid connections for you. 

When it comes to your agent, Look for someone who understands the strategies you're trying to use with the VA loan. 100% financing does take away from the profitability of a house hack, however picking up an asset for 0 down is hard to argue with. Regardless, make sure you run your numbers and make sure your agent understands how too as well. I also have some agents out there I know.

Don't overlook the fact that your 100% financed. (I'm assuming your doing 0 down). So if you aren't cashflowing day one that doesn't mean it is a terrible deal. It is going to be your primary residence for a few years and theres nothing wrong with paying for where you live. Look at it through a long term lens. If it makes sense for your goals then get a second opinion from a mentor or even check out @David Pere and the "Military to Millionaire" Facebook group. Theres a ton of good info in there shared daily. 

As far as tenant prospecting, if you want to rent to military you can list the property for rent through base housing and have them market it for you. This is something new I've been looking into myself so I'm unsure of any fees they may or may not charge, but could take the stress off of you for filling any vacancy. 

Do a thorough home inspection, be prepared for some potential repairs or updating after close, and enjoy the process. PM me if you'd like those points of contacts or any more info. I'm in CA but I'd be glad to help. Kudos to you for using the VA loan to build a portfolio. I love it.

All the best!