Preapproval for loan is done, ideal property seems unavailable

[Chase Kimbrell]

This will be my very first real estate investment, and here are my goals: I'd like a multiplex in a decent area for a decent price. I am planning on using my VA Loan to buy a multiplex and rent out the unit(s) I am not living in. I'm in the military and don't exactly get to choose where I live, and I'm being sent from my station in the UK to Albuquerque, New Mexico. I don't have a problem with this, except for the fact that it has a reputation for being utterly crime-ridden and unsafe. The houses and duplexes for the best price are all in the Southwest of the city, nearest to the airport and Air Force base, my future place of work.

I applied for a loan with Navy Federal, a military-oriented FCU that I bank with. They're offering me 3.5% with no money down, with the VA Loan. Incredible, right? Their only stipulation that I don't like is that they don't lend for anything over a duplex. So now I have found 3 duplexes in my price range, and only one of them looks to me like it would pass the VA Loan inspection for sure. It's $175,000, a 1 bed/1 bath with a garage space for myself and the future tenant, which would not yield more than $700 a month, despite my mortgage, insurance, and taxes being closer to $1050 a month. It doesn't seem to be in the safest area either.

My options seem to be to: A. Be happy with $700 or so a month and just do it. B. Ensure it cashflows more by setting up an automated Air BNB system for it. Or C. Pass it up for greener pastures.

This is my first property and I want to make it count! Any advice is welcome. Thanks.

[Corban Kurz]

@Chase Kimbrell Hi Chase, I am by no means an expert, but the areas near the airport and base do tend to be less than desirable. However, there are good pockets of neighborhoods that could work. I have rental properties off Eubank/Copper which is close-ish to base but still relatively decent, not great but rent well.

The market is hot here, so most anything that will pass a lending inspection is getting really high prices, so that would make it more difficult for anything that is on the MLS. I have been looking at MultiFamily for about a year now and have not bought anything yet. I have made offers on several, but haven't been able to land one.

I would stick to the NE Heights but close to Kirtland AFB rather than the airport if you want a nicer part of town.