@Red Peterson one other item I would pay close attention to is the owner paid utilities (ie.

One other thing.. are there any utilities that you will be required to pay as a landlord or can you pass all utilities on to your tenant?

After the 2 year "has to stay primary residence clause" (which is met this coming Feb) this property would be my first rental in the area, and utilizing the cash out refi, would give me the money to move into my next property without any extra out of pocket money.I'll be sure to come back and update this for any newcomers that want to hear from beginners or are still in the "learning before you leap" mindset.I'll list the purchase info and criteria as well as the rental potential in the area and the cash out refi results below.Initial Purchase:3 bed / 1 bath / 1000sqft / 0.46acre / built in 1980 - Appraised at $140,000 in Johnson City, TN - Feb. 2020Credit Score at the time: 648 (This was a focus of mine as I had been repairing previously damaging years in my early 20's)Purchase Price: $132,000 using an FHA 30-year loan at 4.625% / Closing costs from me $4,666.63 / After all fees and closing starting mortgage amount was $129,609.00 / Monthly Principle, Interest, Escrow (Insurance, Property Tax, Mortgage Insurance) payment: $869.12Rental Potential:Johnson City TN is home to East Tennessee State University and close to Bristol TN for all you NASCAR and drag racing fans.

One is month to month, one has two years before expiration, and the other is a crazy lifetime lease for an attorney in the building where his rent will never increase, is already several hundred dollars below market, and he pays no utilities.  

A lot of times you can call into the utility provider in your area for that information or get it from the seller as part of your due diligence!

Check if utilities are being billed to anyone (you would have transferred those to you).

Not utilizing theland.

@Peter WellmanIf I was in your shoes I'd utilize the VA loan to purchase a home and set aside the $25K for repairs/upgrades or to prepare for your next investment. 

Landscaping / Snow Removal - Since you will be utilizing a rent by the room model, will you take care of this? 

There is also a finished basement that is not currently being utilized so there is potential there as well.