Using my Va Loan to my advantage!!

[Lael Johnson]

Hello everyone,

I am new to this forum but since I recently joined, I have been scouring this site trying to obtain all the information that I possibly can.  Throughout my search, (as far as I know) I have yet to find an answer to the question that I am going to pose.  Here is my current situation:

Military veteran who used VA Loan to buy a condo for $155K. I currently want to begin real estate investing but not quite sure how to do it. I have about $8K that I could commit to using for investing into a multi-family unit along with the equity that is already in my home which isn't a lot. I have a relative that is willing to rent out my current condo in order for me to be eligible to move into a multi-family as an owner occupant.

I have found a few multi-family units (3 to 4-plex) that range from $50K to $155K that are in C- to B- range areas. My plan is to rent my house out to my relative so that I can keep the property and show that I have a steady tenant, refinance my VA Loan into either a Conventional loan or FHA loan and then use my VA loan again to obtain another property.

I don't want to be too long-winded on my first post but I greatly encourage any type of feedback or suggestions to how I should approach this.  Thank you all for your time!

-Lael  

[Jerry Bredesen]

I applaud your efforts to find a way to acquire assets, and thank you for your service. I started with owner-occupied VA loans too, but the rules were a bit looser back then. But personally, I would NEVER rent to friends or family. What happens if your relative loses a job, gets sick, or simply can't pay the rent? Are you willing to evict them, or even have them served? Think about how would that play out at Thanksgiving dinner. It's a business, and you have to be willing/able to do what needs to be done at times.