26 w/ 120k cash, no debt

[Alexander Johnson]

I’m 26 and recently graduated college (no debt, ACCT. Degree). My first job has been contracting for military intel overseas, which has left me with a sizable nest egg. When I get back home, I plan on working in the business intelligence field in Atlanta. I want to buy a house as my primary residence around the 200-300k range (haven’t prequalified yet) and rent out one room. I qualify for a VA loan, so no down payment needed and I avoid PMI. So that still leaves me with a lot of leverage to purchase a rental property. I’m comfortable putting all my $ in index funds, but I’d like to diversify a little and get my toes wet in real estate. And ideas? Thank you.

[Dulce Beltran]

Since your goal is leverage, buy a multi family, live in one unit for a year and rent the other(s). When you got to move out, refinance to pull you VA eligibility onto the next one and use your funds for the refinance/pay down mortgage to 80% to avoid pmi. You may not have to come up with the 20% all out of pocket, appreciation and or sweat equity, will help. Your out of pocket could be 15% or slightly less depending on property, local market, demand, etc.