VA Loan/Next Step.

[Patrick Iverson]

In June 2020 I purchased a Duplex in Ga for 165k, I moved into one side and rent the other for $800 a month. I used my VA Loan and put no money down. I just closed (27 October) on another duplex that I bought for 250k with my VA Loan. It's currently rented at $900 per side with the ability to raise it to the to $1000 mark this year and maybe a little higher after that. I am moving into one of the sides in 60 days. Rent on the unit I'm in will go to $900 and the other will follow slowly. My question is... What's next? I have maxed out my VA Loan limit (almost) and I'm cash flowing a little bit it will take a decent amount of time to accumulate enough for a 20% down payment. I guess what are my options for getting that next property? Initially I planned on refinancing these into a conventional loan after a few years but with interest rates being so loan now and I anticipate they will be high by next year I'm not sure if that will work. Thanks in advance for all your help!

[Dustin Allen]

@Patrick Iverson

Thank you for your service!

If you can force some appreciation by remodeling the units, you may be able to refi sooner.  Without forced appreciation, it will be tough since you started with 100% leverage. 

You can also keep looking for any owner finance situations for your next property. They will typically want 20% down or more but you may get lucky and find someone who would take less to help out a veteran.