How would I afford a $600k property on an e-4 salary?

[Sam McHargue]

Hi,

I plan on join the military soon, and due to the mos I'm choosing i will probably be in san diego. My question is how do I get funding for rental properties when I make so little. I would like to buy a fourplex, and sometimes they cost 1 million plus in San Diego. Most banks wont do a VA loan with a debt to income ratio greater than 43%. I think its the same for an FHA loan too. Any ideas?

I await your response,

-Sam

[Andrew Postell]

@Sam McHargue lots to this but I will do my best here:

1. If approved to live off base you will receive BAH - Basic Allowance for Housing.  This is pay you will receive to live off of the military base.  It is based on your market/duty station.  So the higher housing costs are, the more BAH you will receive.
2. You should be working with a lender that allows your rental income from your property to be used IMMEDIATELY.  That rental income from the other units will help you qualify for the loan.  But not every bank will use it.  Interview the lenders when you get to that point and make sure they can use it right away.  None of this "It needs to be on tax returns" or "we need a lease"....they need to be able to use rental income even if the units are completely empty.
3. "Debt to Income" - 43% is way too conservative. At minimum you should be working with a lender that uses 50%. They can go up to 55% for FHA/VA.

Hope this information helps in some way. Thanks!