Question about VA loan on rental

[Benjamin Tighe]

Four years ago we purchased our primary residence with a VA loan. I just did a cash out refi on the home and plan to use the funds for an investment property. I have a preapproval and an agent friend of mine on the hunt. A few of my friends have rentals because they simply moved and kept their old houses. I was of the understanding that this is not an option on a VA loan. I recently read that the occupancy rule changes if the VA loan is the result of a refi. My loan docs state that occupancy requirement is 1 year. It does not specify if the time starts at closing of the new loan or actual occupancy. We never intended to move but the lower interest and down payment open my options quite a bit compared to my current preapproval. My main concern is that I don't want to lose the ability to reinstate my VA loan eligibility. Does the requirement to dispose of the property change with a VA refi?

 My primary home would make a decent rental but the value would be in loan paydown and appreciation (which I'm not banking on). Not much room for cashflow because of the cash out but the neighborhood pulls in high rents and has the best elementary school in the area. I know the house well and we have updated everything but the roof and hvac but the home is only 15 years old. Right now I can afford $250k for a rental property but if I moved and fixed up a house I can probably do $350k to $400k all in. Not sure I could move into multi family without renting storage for my tools and trailer.