Military - first purchase considerations - can I rent from myself?

[Seti Harr]

I've been reading this site and REI information for a long time, and have been wanting to break into real estate investing. I'm requesting some input on my plan.

First, I'm a military member, and will be receiving a significant promotion in rank/pay in May that will come with a move to a new location within the lower 48 states. I will be at the new duty station for 4 years (most likely, but there are no guarantees in the service), and be eligible for promotion twice during that time - though I'm taking neither for granted. I will receive a housing allowance (BAH) roughly equivalent to [a conservative] $15-20k/year that can either go to rent, base housing or a house purchase.

Next, my plan, 30,000-foot view: I want to purchase and live in a house under the pretense that it will become a rental property (by necessity, within a military community) when it's time to leave. Whether merely for a 1031 exchange towards the next rental property or as a buy-and-hold property for the long-term; I want to leave both options available. Based on my pay/allowance calculations, I want to keep my purchase price below $215,000, to leave room in my budget for renovations/repairs/taxes/unforeseen expenses, and will base my final purchase price on comparable rental properties in the area.

After 3 years, I would classify the property as an investment property, and hold under an LLC - relevant laws permitting, I would be my own landlord. At the end of the 4 years I will have converted approximately $60-80k of housing allowance to approximately 25% equity on a 30-year note [minus taxes, repairs, incorporation expenses, etc].

Then, the gray-area: I have some cash on hand, and zero debt. I have never purchased a house before, always been a renter/base-housing occupant. I am considering a VA-home loan (pending further research) secondary to no down payment required. I want to keep my cash reserves available for incidental expenses/taxes/closing costs/inspections etc, and pay towards principle in the future, if possible.

I realize I'm making several assumptions here, and have been light on many specifics. That's because I don't know where I'm going to get stationed yet, and want to have a rudimentary plan in place when it's go-time. Thus, I'm asking for input towards any major oversights, and if this plan is workable.

Additionally, if anyone wants to chime in on the finer points of converting owner/occupant to rental, VA home loans, and incorporating, etc. I'm all ears.

Thank you for your time, and dedication to this awesome resource.
-Seth