Army Veteran looking for financing options for investment properties

[Account Closed]

Hello everyone, 

I am looking to buy my first investment property this year and looking to focus primarily on HUD voucher holders.

I am inquiring about different financing options that may be out there that I am unaware of. I already am using my VA home loan on my primary but was curious if there was any loan options for veterans specifically for investment properties. If not, what are some ways I could fund the start of my investment journey as I only have about $30k in liquid funds.

Any help would be greatly appreciated. 

Thank You, 

Nelson

[Hamp Lee III]

Welcome to BP!

I’m active duty Air Force.

There’s a few options you have to fund your next project:

1. VA loan. If you have a qualifying event like, moving, divorce, growing family, etc., you can use your VA loan again. Yes, this would require you to move into the new home as your primary residence. This also depends on your remaining entitlement.

I have active three VA loans right now, and two of them are rentals but were once primary residences.

@Steven Santon can clarify anything I missed.

2. Secondary (vacation) Home. With these loans, you can purchase a home putting 10% down. Many lenders will require the home to be at least 50 miles from your primary residence. Then, you can run it as a short-term rental or long-term. If you go the short-term route, check out the book at Avery Carl: Short Term Rental Long Term Wealth.

3. DSCR loan. With a DSCR loan, you can find one that funds up to 85% LTV. Sometimes higher, but this is what might be considered typical. If you have a lower price point for a home, you can purchase a local property that might not need a lot of work and rent it out.

4. Joint venture. You can partner with another investor to purchase properties. Say, you find someone or a small group that also has $30K, this allows you more options and flexibility.

Right now, I'm forming a JV this month and preparing the paperwork with lawyers now.

There are many other options as well, but I wanted to list those that are most common. I wish you all the best.

Let me know if I can help further. I’m available available to chat.