Having the opportunity to purchase a home with little to no money down is an amazing benefit, this is what the VA loan enables our veterans to do. Every veteran with a decent paying job that qualifies should own a home. If they want to get creative, they can also utilize this loan to start their own real estate investment business, while living for free.
Real estate, its the largest asset most people purchase/invest in over the coarse of their life. Over time it appreciates, plain and simple. Although over the past decade we’ve seen some hiccups, anyone can comfortably say over the long haul (15-30 years or the length of a mortgage) a home will be worth considerably more than the initial purchase price.
When buying an investment property, the idea is to make enough to cover the mortgage, expenses, and maintenance, ideally leaving a little leftover for your pocket. Right now the rental market is expensive and rent prices(like home prices) will go up over the long haul. This means more and more leftovers for your pocket the longer you hold the property, all the while paying down your mortgage.
In the investment community, there is the term “house hacking” which is reserved for newer investors who are looking to live for free. House hacking involves getting others to live in your property, paying you enough rent to cover your mortgage/expenses/etc. This can be done through renting rooms or ideally through separate units. Buying a Duplex/Triplex/Quad/Attached Apartment can enable a first time homebuyer to accomplish this.
With a VA loan, a veteran can also accomplish this, for little to no money down. With a quick check to www.rentometer.com and an address you can check what you can expect to get for each unit. As long as the property is your personal residence, or owner occupied, the loan will be approved.
You might be saying to yourself that, you don’t want to live in a multifamily for the rest of my life, but as your family grows and equity grows in the property, you can refinance the loan as a investment property, allowing you to move on while keeping the home. By refinancing the property out of the initial loan, this now opens up your $0 down VA Loan to once again buy a home without needing a huge chunk of change for the initial purchase.
Let’s take a step further and say you needed to relocate or upsize the unit you were living in and wanted to buy another duplex/triplex/quad. Refinance the owner occupied property you initially bought, and then (for no money down) move into another multi-family using your VA Loan. You now have two properties and a bevy of units making you money. Imagine if you could just repeat this process a couple more times, wow.
This has been done but investment savvy veterans all over to create passive income, and then later on down the road, once the mortgages/loans are paid down, you can reap the benefits of appreciation and cash in by selling the properties.
For more info please visit : http://www.buyacapehouse.com/