VA LOAN OR FHA 203K?

[Randall Owens]

Hello BPs Community, 

So I am new to REI and is looking to purchasing a 3-4 multi-unit in 2020. My plans are to house hack the property and hold it long term for cash flow. Oftentimes, I hear investors state how it is hard for them to obtain financing at a certain point in their investment journey. I will have access to VA and FHA 203k loan, so I am curious as to which financing option would be best for an individuals starting out with goals of building a large real estate portfolio within five years. With VA it offers a no down payment however, the property have to be practically move in ready with little rehabbing available. This option leaves me with little to no room for equity growth starting out but with the numbers done well can still cash flow. With no significant equity being established with the VA loan I feel as if the process to scaling more deals will be a lot slower because my only growth of income is through the cash flow. FHA 203k allows me the opportunity to utilize the BRRRR deal and scale properties at a faster rate while cash flowing at the same time. BPs community, I would really appreciate you all advice as to which financing option would be better starting out. I understand both of these financing options are great in their own ways especially if used at the right time during an investment journey.