My Second Property: Investing in a New-Build Home with a VA Loan in Bryan, Texas

[Aaron Dyson]

Howdy Everyone, 

I just put a 4-bedroom, 3-full-bath new-build home under contract in Bryan, Texas, using a VA loan. The purchase price is $325,000, and as part of an end-of-year incentive, DR Horton bought the interest rate down to 3.99%. The catch is that it must close before January 31st, and I had to use their lender, DHI. My monthly mortgage payment will be approximately $2,100.

Comps in the neighborhood are currently renting for around $2,600/month, so my plan is to live in the property for 1–2 years before renting it out. For now, I’ll have one roommate paying me $600/month and might consider finding a second roommate to help offset costs further.

This will be my second property. I currently live in a 3-bedroom, 3-bath townhome about half a mile from Texas A&M's campus, which I plan to rent out once I move into the new home. Before renting, I need to complete a few improvements to the townhome, such as landscaping and replacing the flooring in the bedrooms.

I have a few questions and would appreciate any advice: 

What should I look out for during the home inspection and closing process on a new-build property?

Does it make sense to start an LLC to hold my properties, and what are the pros and cons?

How can I best prepare for managing two rental properties, including handling maintenance, vacancies, and tenants?

Looking forward to hearing your thoughts—thanks in advance for the advice!