Be sure your lender is comfortable with this, as many fear giving folks primary loans for properties they view as having a high probability of being turned into a purely investment.

These properties can provide cash flow and diversification while qualifying for favorable residential loans.

Quote from @Brittany Minocchi: I'm a bit farther north, but I've helped a couple of people with loans in that area - the properties seem to be working out well for them!  

Even if you only owe $26,000 on the loan, your payment will still be the same.

One solution could be a Debt Service Coverage Ratio (DSCR) loan.

You would have to check the loan terms.

I'm currently reading David Greene's "BRRRR" book and I will be utilizing my VA Loan as a first home purchase (duplex) for my first home utilizing the VA Loan.

The refinance step is where you pull out this equity, typically in the form of a cash-out refinance.Here’s how it works:You refinance the property at its new appraised value (after rehab and renting).You take out a new loan based on that increased value, ideally for the full amount or more than what you originally paid for the property.The goal is to pull out enough money to cover the cost of the original purchase and rehab (or even more, depending on the property’s appreciation).This allows you to recover your initial investment, which can then be used to buy your next property.5.

Never used a DSCR loan in the past and have always understood those rates to be higher by a point or two in most cases.