VA and Location

[Dan Bee]

Hi all.

I'm just starting out in real estate investments. However, what my wife and I have saved up needs to go into something we can live in. I want to be able to use our FHA or VA loan capabilities. I'm taking on a new job in Lancaster, CA which is said to have very affordable housing. Some people have recommended that we get a quad in the Santa Clarita Valley or in Tehachapi.

How do I figure out on average which quads have the best ROI, rental yields, cap rates, etc in which area? I want to compare the areas on average. Is there a report on the best ROI in Los Angeles and Kern county? I also don't think I can afford to take out a VA or FHA loan for more than $600k. The loans stipulate that we have to live in one unit. We may move out after a year.

Thoughts on how to find the best ROI would be helpful.

[Upen Patel]

@Dan Bee Thank you for your service. You can use your VA benefit as long as you are going to stay in the unit for at least 1 yr. The great thing about your VA benefits is that they adjust based on the county you are going to be in and the # of units in the property. VA loans can go up to 4 units. Below is the VA loan limits for LA County.

1 unit - $ 625,500
2 unit - $ 800,775
3 unit - $ 967,950
4 unit - $ 1,202,925

Please let me know if I can answer any other questions.

Regards,
Upen Patel