Questions about 2 VA Loans at the same time

[Jose Taveras]

Hello everyone,

Been a member for a couple months but this is my first post. I purchased my home December 2021 using a VA loan, it's a multifamily and the purchase price was $495,000. Currently I'm collecting $700 from the basement apartment, $1600 from the 2nd floor apartment, $800 from the 3rd floor apartment, and I currently live in the 1st floor apartment rent free with all the rental income covering the mortgage completely. All tenants been living there for 5+ years. When I purchased the house, it also came with the lot next to it which is big enough to build another multifamily. In my area the VA loan limit is $1,089,300. Using the veterans united entitlement calculator, it says I should be eligible for another VA loan and not having to put down a down payment with estimating the build cost to be $450,000 which is on the high side. I just opened a business checking account to deposit 6 months of mortgage, deposit the monthly rental income, track all expenses, and pay the mortgage, which I should’ve done from day one. My problem is the area my home is in is regulated for 2 family homes only, so my basement and 3rd floor apartment are technically illegal even though they have proper EGRESS and all municipal requirements for a legal dwelling. From looking at the rentals near my home and the condition of the 1st floor apartment, I should be able to rent it anywhere from $1600-1800. With the rental income from the 1st and 2nd floor apartment it will cover the mortgage for the first house. The new house I would like to build will be a 2-unit. The 2nd floor apartment will be rented out and should produce an income of $2000-2200 and I will be occupying the 1st apartment which can also be rented out for $2000-2200.

1) With everything being said, am I doing everything correctly to show the bank my current multifamily produces enough rental income to cover the mortgage? 

2) Will I be able to get a VA construction home loan with already having a VA loan? The reason I will be using to apply for the 2nd VA loan is that my partner and I would like to move to a bigger space so we can start our family. I know the 2nd VA loan is mostly for active duty who are going to PCS but want to give it a try.

3) How do I split the 2 lots? My loan says its for house 473-475 XX street. House is on 473 and would like to build a new house on 475.

4) Should I start an LLC to manage to the property?

All advice is appreciated so feel free to give your input. End goal is to have 7-10 multifamily or 1-2 apartment buildings.