Budget is $200,000 and I plan to put down 20% that is a gift from my mother.I talked to a mortgage broker with Edge Home Finance and submitted an application for pre-approval.

.: Quote from @David Leggett: The Cleveland market hasn't been well known for appreciation over the last 20 years and has mainly been a cashflow positive rental area, but my clients who bought with my pre-2020 have seen their properties go up 20-40% in some cases so you never know what can happen on the macro level that can affect prices and make markets more or less appealing. 

I have an MBA and I work in Corporate Real Estate.

The information given for a pre-foreclosure off market lead was incorrect.

If you have that much cash it would actually be more efficient to purchase a pre-existing fourplex, put the 5% down and get some concessions to buy down your rate.Hopefully that all made sense.

Hi Manual, As Joseph mentioned you need to look at your entitlement limit and the pre-approval capability with the VA on a "family" rider type property.

@Arianna Farinas- thanks for the post ...I would recommend getting formally pre approved for a hypotehtical duplex purchase  using whatever figures you want to use . 

Whoever is doing your property management on this rental should be able to advise you on what to do with a pre-existing tenant and what rights they have to the property.  

But still trying to conceptualize how to incorporate ongoing expenses/interest payments and loan paydown into that equation to get a more holisitic image before deciding where to live

So here's my question:Is it normal to take a pre 90 day LTV to recoup the purchase cost, wait the seasoning period, and refinance the rest of the cash out at a later date?