Second investment: should I or shouldn't I

[Johnathan Kwon]

Hi everyone, 

I am strongly considering my second investment to be a VA loan for a multifamily home in or around Seattle. I've been approved for an 800K loan, which would put me at a 45% debt to income ratio. Zero down, so mortgage would range from 3500-4200/month on homes ranging from 650K to 800K. Rental comps vary but are relatively high given the location.

I am looking for a 3 to 4 plex that will pay for itself. I am not looking for an income generating property since I have to live in one unit. Minimal out of pocket costs for renovations or turnkey properties. Is this a rookie move? 

I am okay with paying the closing cost fees etc to get the property as well.

I am okay to pay up to 500/month on the property for additional fees: cap ex, management fees etc. My perspective is that paying 500$ a month for a 650K+ property is a decent investment; I pay close to 500$ a month in rent right now anyways. If I move to Seattle area, the previous rent would go away and id be paying directly into owning a property. 

Question I have for myself:

--Im strongly based about using this benefit and is it clouding my judgement. Is it causing me to fumble future profits because I want to use the loan and move to Washington? I want to use it because I want to reuse VA loan benefits for future homes as I move around.

--Using a VA backed loan to get a property that will essentially pay for itself... is this a newbie move or is it feasible and a logical investment?

--Will this hurt future loan applications cause it will pretty much max out my debt income ratio when applying for loans?

Are there any other questions I should be asking myself?

[Bruce Woodruff]

Originally posted by @Johnathan Kwon:

Are there any other questions I should be asking myself?

This may just be me (but I doubt it).......Why do you want to start doing business in a state that is so tenant friendly and landlord unfriendly? We get people here on the forums, on an almost daily basis, that are getting screwed as landlords by owning in these states.