@Darvin Ezell Darwin, asking for the cost to build a single family home or anything is like asking how high is up.The answer is “it depends” on: the cost of the land, entitlements, site cost and hard cost (vertical construction).Hard cost can run to literally anything based on the quality and level of finish and include gold fixtures and imported antiques.That said, the average home in the US is about 2,000 to 2,200 sq ft and sells for about $120 psf and sits on a ~5,000 sq ft lot that probably cost $40 to $50k.I can send you an Excel worksheet that runs a residual analysis to determine hard cost and finished lot cost.

With that much residual income left over, I'd suggest considering entering a small multifamily market as you minimize the risk and maximize cashflow. 

The value of an investment property consists of two components—market value and residual value.

The best way to get a preliminary figure is to run a residual analysis.

Another fun fact about VA loans which may be "overlayed" -- technically there is no DTI cap. if you get approved/eligible findings, AND you meet the residual income requirement, you could have an 80% DTI and still purchase with 0% down. banks, credit unions, MANY lenders will still cap DTI. just one example of an overlay as you're shopping :)The dollar amount of your entitlement ($36k) does not refer to a loan size for you, it determines how much the VA will guarantee to the lender in the event of your default.

They take in residual heat from the apartment downstairs and they use a space heater. 

The method I would use is residual land value.  

In addition as we spend so much you develop continued brand awareness so you'll see a lot of compounded residual effects. 

VA loans don’t consider DTI as much as residual income.https://www.veteransunited.com...I hope this helps.

I'm from LA and have been itching to start my journey toward more residual income by purchasing rental properties.