Can anybody take a quick look at my entry plan ?

[Robert Boyer]

I am a recent business school grad from the University of Colorado. I came down to Texas to work because I can stay with family and my wife was pregnant, she has since had the baby. So I am not paying any rent. I have some expenses but not too much. I am working to pay off some credit card debt I had from a few years ago due to an unforeseen circumstance with my roommate. My Fico is currently 589, but I am looking to get it up to over 620 soon. I have been using the surplus to pay some of it off. 

Once I get into that spot, I am looking to buy a house here in the texas area to rent. Ill likely take my own loan out. I am really just looking for a little cashflow to cover any expenses and hopefully generate a little income. 

Next Spring//Summer I would like to move back to Colorado and purchase a 3 or 4 family unit with a VA loan and house hack one of the rooms for myself and rent out the other 2 or 3.

I then plan on working as a real estate agent to make some commision and connections to invest in more homes. 

I plan on managing them myself, and maybe hiring a family member or a property manager for the Houston home once I leave. 

Anybody see any faults in this plan? 

I am trying work each day to get closer from talking about it to actually doing it, but I dont want jump head first into a mistake. 

Thanks for any advice. 

[Jeff Lezark]

That's partially correct. A conventional lender - and this includes FHA/VA - will consider only a portion of the rent received to offset expenses. Typically, but not always, they want to see a 1.25 DSCR to offset the entire payment. This is critical to your plans in Colorado so you'll want this squared away before doing anything else. Your best bet is to call a national lender such as Wells Fargo or Bank of America to nail down what % of rent will be allowed for offset. Some want you to have the place rented for >1 year while

VA loans are a little more lenient than others but they still have standards to meet. For example, if you move to Colorado and become a Realtor you'll have to wait 2 years before that income will be considered for lending purposes. Why? Because it's 100% commission and a track record of earnings must be established. It's better to apply while you're in your current job. The landmine there is that the VA will not allow non-owner occupied financing so you need to be employed in CO before you apply.