I'm definitely leaning more towards the VA option, I just want to see if any of you have good reasons for or against either option.Ryan Conventional pricing is around mid 4's to higher 4's while VA pricing in the lower 4.00's but if you price the VA to be on "par," with conventional meaning the VA loan with no VAFF (VA funding fee 2.15 - 3.30%) then you'd have a similar rate to the conventional loan apples to apples pricing wise.The one advantage you had mentioned is that the scenario above wouldnt be  apples to apples when it comes to down payment because the VA loan would have 0% down while the conventional loan you could have as low as 3-5% down (with PMI paid monthly or within rate or split premium).Also, you only have VA entitlement (if not already tied up else where) for usually one property or home so by using conventional you can keep an ace in the back pocket or conversely you could do a low down conventional low with no monthly MI and keep the VA in the back pocket for emergencies or future planning (in case you plan to move out to get another primary shortly after 1 year again).VA loan also has a lot of YSP or yield spread premium so you can do no down and no closing cost pretty easily or use the credits towards paying off the VAFF or taxes/interest/insurance etc while the conventional loan does not nearly have as much YSP or lender credit to offer so your ability to strategically plan with your rate is not as readily available as VA.Generally, I'd say VA all the way 90% of the time but there are reasons to keep it available.

I realized it was not my passion - my night, weekends, and conversations with friends was always centered around 'real estate'.

And if I am understanding what Dorothy is saying, this is very different from rezoning a SFR in a neighborhood to have additional units.Appreciate the information and the informative conversation.

You have to use the lower of the adjusted basis or the FMV on the date of conversion.

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Basement conversions can be quite expensive and you may not want to be exposed for those costs when you technically don't hold title.3.

I'm looking for like minded people who would like to have a conversation about out of state investing!

An LLC/Corporation is an option, but I would definitely recommend a conversation with one of our Global Property Specialists that deal with overseas buyers on a daily basis.

Convent Conversion  901 E Evans Ave  Pueblo CO, 81004    Purchase Price100000 After Repair Value167,000 Closing Costs5000 Estimated Repair30000 Down Payment20000 Loan Info80,000 @ 5%, 2 points, 25 years    7 small 40028001 master500500Total Income 3300  Operation Expenses  Vacancy (12%)400 CapEx (10%)330 Water200 Insurance200 Repairs (10%)330 Electricity200 Garbage200 Management (10%)330 Total2190   Loan467.67   Total Expense2657.67 Total Cash Needed56,600 NOI13,368 COC ROI13.70% Final Cap Rate8% Monthly Cashflow646.33 

I would have to install an additional drive way for the house and use the old one for the conversion.