Asset Protection w/ VA Loan

[Derek R Schiavone]

Hi all,

I'm looking to get my first investment property sometime next year, a triplex or quadruplex. This property will be in an LLC. But I'm also looking to use my VA Loan to get myself into a househacking situation with a duplex or higher. In this case, since I can't put the property into an LLC, what would be the best way to maintain asset protection? Aside, if this property were a 4-plex, would it be worth getting a property manager?

[David Pere]

When you buy a duplex, you can use 75% of the gross rents toward your DTI. For example, if the other unit rents for $1,000/month then you could add $750/month ($9,000 annually) to your income on the debt to income requirement. The caveat is that you must have two years experience as a landlord to utilize this income.

However, you can bring on a property manager who has this experience, and then utilize the income toward your DTI.

@Jon Lallande one of my go to VA lenders and I have broken this down to show people at a meetup before, and you can legitimately qualify for a much more expensive 4-plex than you would ever be able to qualify for with a single family home.