Build Second Home (VA Owner Ocpd), VA Streamline and Rent 1st?

[Matthew Nelson]

My family and I closed on our first, newly built home in the San Antonio area in November 2021. I am interested in building a second home in the San Antonio area, closer to where my wife and I work. I like the work our builder did in our first home and ideally it would be a home we keep for a while. They have a development community that offers the same home type which fits into our desired commute. 

I used my first VA 30 yr fixed on our house, sold at about $325K at 2.75%. I am interested in using the VA Streamline Refinance (IRRRL) and renting out our current property, then reusing my VA benefit for the second, owner occupied home we may build that is closer to work. Is this doable? Is this the best COA?

A couple of the reasons/concerns I am considering this:

• -Difficult to go the BRRRR method in the current market and actually find a deal (too many non-Texans, like myself originally paying way over market value on MLS)
• -I liked the work the builder did on our property, and we would ideally build a base model without much customization, and add forced appreciation in the second home while we live in it over time
• -I would like to take advantage of the current rates, as well as my VA benefit with the best strategy possible in starting the rental journey
• -I know our current home would rent and cashflow well (only con/concern is that our upgrades are on the higher end, rather than econo-rental-friendly: porcelain wood-look flooring, granite countertops etc.) 

Anyone have any experience in this? 

Thanks!