First Purchase advice

[Jacob Ramsey]

Right now I'm looking at several options for our first purchase. I like the idea of a multi-family property, but I'm not sure it makes sense given the location and uncertainty of how long we will be in Austin. I have access to a VA loan, and we both have sterling credit and plenty of money set aside for a down payment.

I work near 183 and 45, and my girlfriend goes to school at UT (1 more year) after which she has to work for 2 years as part of her scholarship.   So we will be in Austin for at least 3 more years, but are not sure how much longer after that.

I would like to get something somewhat close to my work so that I could bike daily (it doesn't have to be that close... I bike 16 miles from Mueller without too much problem), as it would save having to buy a car for her when she graduates.    

I'm tempted to just buy a condo as there are several near Jollyville / Mopac that are under $200k that would be less / month then we are paying now for rent.  However I really like the idea of house hacking to build wealth... I'm just not sure it makes sense right now.  It seems like there are plenty of multi-family properties in South Austin, but the commute is un-appealing.  Properties near where I work are extremely expensive and there seems to be a shortage of them.

Any advice?

[Leland Barrow]

You don't need to use a va loan to buy a house. The advantage of the VA loan is the down payment or lack there of. It will be hard to find a property that is both a income generator and within biking distance of locations. Personally I wouldn't waste a VA loan on a condo. I would suggest renting until you decide to invest in real estate. A personal residence is not an asset it is a liability. There should be no rush to add to your liabilities. If you want to build passive income then I would maximize the VA loan. Buy the best fourplex you can get your hands on that gives the best return. You can live there for two years or less depending on your circumstances. After that you can FHA another fourplex for a low down payment. I think it is 3.5%. You can have seven income generating doors and once they are seasoned you will have a couple of assets to leverage for more property acquisition. The idea of using the VA loan is to maximize leverage.