Using VA loan in investment properties

[Kevin McGevna]

My friend and I are new to real estate investing and are looking to partner on a deal. He is military and wants to use his VA loan to help us start. I want to know if anyone with some more experience and knowledge can give us on advice if A) this is possible ? B) if there are any limitations ? Thanks ahead of time!

[Adam L.]

Hello, Kevin. For ease of typing I am going to say "you" when I may mean you or your partner.

So, you must intend to live in the property for at least one year to use the VA loan. So if you would like to invest in a quadplex and live in one of them while renting out the other three you can do that. This is something my company and I always recommend! House hacking a quadplex with zero down on a VA loan is an amazing opportunity! That of course means you cannot invest in different location with your VA loan since you would not be able to live in it and the VA loan is only intended for the primary residence.

Now, when it is time for a military move then you can do it again at the new location with the remaining amount of the VA benefit or refinance the VA loan into a conventional loan and use the full benefit again. There are some amazing opportunities with the VA loan that are fantastic investment choices. Please let me or my partners know if we can help in any way!