VA Loan for multi-family property

[Daniel Jarzynski]

I am looking to buy my first investment property in early 2021, a multi-family home which will also be my primary residence. I am eligible for the VA loan, and will have about $50,000 saved, so I have the option of either 0% down or the traditional 20%. There are a lot of requirements that come with the VA loan: the property has to be in good condition, and require minimal repairs; no manufactured homes; foreclosures and bank owned homes don't qualify; it has to be a primary residence for >12 months; and many more.

Does anyone here have any experience using the VA loan? More specifically, using it for a multi-family property. What was your experience, and would you recommend I limit my search to properties that meet the loan requirement criteria, or pass on the 0% down opportunity?

I will be buying property in eastern TN, where multi-family properties cost $120,000-$200,000. Financing with 20% down would still leave me enough money to make minor repairs, and I have a $35,000 credit limit if I buy a higher end property, and/or one that requires extensive rehab.

Thank you in advance for any help, I look forward to becoming a part of the BP community as I begin my journey to becoming a real estate investor!

[David Pere]

@Daniel Jarzynski i've written a couple of VA loan articles for BP, and in my opinion it is the best loan you can get for a primary residence. If you use it and hold the cash as reserves you will be able to whether any downturn while you are getting all the benefits of a house hack. There is even a VA renovation option that will allow you to buy properties that require a little work, though a lot of lenders don't offer this, or know about it, yet as it is a newer program, so you may need to shop around a little bit.

Also, welcome to the military REI community, there are a surprising amount of us!