Wife concerned rentals will prevent purchasing our home...

[Derek Okahashi]

Can you guys please chime in? My wife is concerned that my goal of purchasing one home per year over the next few years will prevent us from buying our own home (currently renters) in a couple of years when we move back home. My thought is that we have the VA loan available so we can purchase with zero down when we do move home and that positive cash flowing assets will not look bad to a loan officer. She is of course concerned that all of our money will be gone (it won't but we have the VA zero down loan anyways) and even if we still have savings, no one will want to give us a loan because of our LTV/DTI.

I'm trying to weigh and compare having say 3 performing investment properties in two years and then applying for a VA loan vs buying our primary residence with 20% down then trying to invest with a HELOC. I think I know where I stand but want to get her as much information as possible.

Another obstacle I won't go too far in to is that my mother-in-law is trying to convince us to buy a rental back home in Hawaii that will negative cashflow. She is a broker (not an investor) and just wants her daughter to have some sort of obligation to come home. That's all about that :)

Any advice is appreciated. Mahalo!

[Chris Mason]

Originally posted by @Derek Okahashi:

Can you guys please chime in? My wife is concerned that my goal of purchasing one home per year over the next few years will prevent us from buying our own home (currently renters) in a couple of years when we move back home. My thought is that we have the VA loan available so we can purchase with zero down when we do move home and that positive cash flowing assets will not look bad to a loan officer. She is of course concerned that all of our money will be gone (it won't but we have the VA zero down loan anyways) and even if we still have savings, no one will want to give us a loan because of our LTV/DTI.

I'm trying to weigh and compare having say 3 performing investment properties in two years and then applying for a VA loan vs buying our primary residence with 20% down then trying to invest with a HELOC. I think I know where I stand but want to get her as much information as possible.

Another obstacle I won't go too far in to is that my mother-in-law is trying to convince us to buy a rental back home in Hawaii that will negative cashflow. She is a broker (not an investor) and just wants her daughter to have some sort of obligation to come home. That's all about that :)

Any advice is appreciated. Mahalo!

Hi Derek,

Cashflow positive real estate will help your ability to qualify for a primary residence mortgage, not hinder, assuming an REI-friendly lender, and that you maintain adequate PITI reserves (if you have healthy retirement accounts, that'll typically do it).

So that Hawaii property could in fact hinder your ability to qualify for a primary residence mortgage. Having investment properties but no "oh crap!" fund could also hinder you.

If you're maxing out your 401ks and buying cashflow positive real estate, I wouldn't worry.