Lenders typically won't count rents as income until they have been producing rent for a specified time (it's been 2 years around here).If your new home will eventually be a rental, you would probably use the same buying criteria as an investor.

There are any number of ways to invest that money to produce a return.

While all of the strategies you mentioned will provide you with your desired outcome, you have to understand what your activity produces.

Condo/townhouses that produce $2000 rent/month will easily cost $400-500K and a single family house of $3000 monthly rent will be around $700K.

@David LeeRenting has cash flow and tax shelter benefits (I'll learn more about that when I meet with an accountant in the next couple of weeks), but I like the idea of the chunks of cash flipping produces.

Is buying a duplex the best way to go if you have never owned an income producing property?

I do not use forms other then the ones I have had produced, so I can not answer that question.

We only have 5 since we just started in Nov. 2011 but I am happy to help in any way!

If its $975 I wouldn't expect $1000 to produce hang ups.

I can relate to Eric with the lost opportunity cost of not buying at all with regards to appreciation, tax benefits, cash flow, and having the tenants amortize down your principal balance.I assume your cashflow of 800 assumes you rent all units out and yeah perhaps you'll just break even for one year (recommended if you do VA you should file the first year's tax returns at the property so you're documented to be in compliance with VA primary).After you vacate the property you now have an asset producing income for you even if it's at market value when you bought it.It's all about managing your cash flows in good and in bad times so it depends on what your contingency plans are in the event a tenant moves out, you're at 75% occupancy, 50% occupancy, RE values drop and your over levered, etcUnique Dynamics of the VA Offer below:VA loans also have a:2.15% upfront financed VA funding fee (VAFF) if you put down 0%1.5% if you put down 5% or more1.25% if you put down 10% or moreIf its your second use you will have 3.3% VAFF if you put down 0%1.5 and 1.25% guidelines still apply for second use VAFFThe VA nonallowables are costs that the buyer is not allowed to pay so you'll have to strategically structure your offer so that it will be competitive with other buyers as well otherwise if the seller has to pay the below it may make your offer less attractive - FYI- escrow fee's or settlement/closing fee's- loan origination fee's other than points (underwriting, processing, etc)- doc prep fee's- application fee's charged up front for loan- pest inspection fee for your property- attorney fee's (if for other than title work)- assignment (if buying a loan or property assignment)- copying fee or email fee etc (lots more but those are the main ones)