I’ve seen this question answered a few different times but I wanted to get a second opinion before I went down the rabbit hole of looking for properties.

    I bought a home in 2020 using $420k of my VA entitlement. I lived there for a few years until I recently deployed and have rented it since then. Renting has gone well and I’m renting for $1000 over the mortgage due to my low interest rate (2.25%). I’d like to continue to rent the property when I return.

    Since the property will remain rented, I have to find somewhere to live when I return from deployment in ~6 months. I have been looking at small 1-2bd room houses and duplexes. My idea was to use a second VA loan with my remaining entitlement to find a decent property that I can live in for a few years until I decide to buy another SFH to live in. Currently looking into a duplex that is rented on one side and vacant on the other side, which I would live in.

    I’ve been preapproved for enough to cover the cost of the duplex but I wanted to make sure u wasn’t missing any glaring issues/concerns.

    My ultimate plan is this: continue renting current home. It is in a desirable area and I will have no issue renting it well above the mortgage. I may end up returning to this home down the road and never plan to sell due to the low interest rate. I’d use remaining entitlement to buy a second home and live there for a few years. The second home would be essentially a break-even asset as far as rental income but would still gain equity. Once I’ve lived there for a few years, I would move out and fully rent with plans to purchase land or a bigger home for long term. I would do this by either using a conventional loan or refinancing my second property from VA to conventional to receive entitlement back. What am I missing?

    Using VA loan remaining entitlement for real estate investment
    byu/rushing11alpha inMilitaryFinance



    Posted by rushing11alpha

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