If you are a veteran or active duty military person concerned about rental property investments, this blog is for you! Investing in Stockbridge rental properties can be an excellent way to secure your financial future and build equity. However, there are a few things you should be aware of prior to beginning. The following will explain the fundamentals of buying rental properties as a veteran or active duty person. We’ll also go over some pointers that can make it simpler to find and purchase investment properties. This guide has something for everyone, whether you are a newbie or a professional in rental properties.
Invest with a VA Loan
If you are an eligible veteran, you might be able to get a VA loan. This kind of loan is excellent for buying rental properties because it requires no down payment and has lower interest rates. To qualify, you must fulfill a number of requirements and earn enough money each month to pay your mortgage. If you’re qualified, a VA loan may be a fantastic way to fund your investment in rental property.
With VA loans, there are a few drawbacks to take into account. If you put less than 20% down on the house, for instance, you might have to pay for private mortgage insurance (PMI). Additionally, there are borrowing limits based on the county in which the property is located. Therefore, if you are considering rental properties in high-cost areas, you may not be eligible for a VA loan.
Furthermore, you will need to be aware of occupancy requirements. The property must be used as your primary residence for at least a year after purchase by you or a qualified tenant. Following that, you can lease it to tenants. You might have to pay a penalty or have the loan terms changed if you leave the property before the year has passed, though.
Use BAH to Secure Financing
A wonderful benefit for active duty military investors is called the Basic Allowance for Housing (BAH). BAH is a housing allowance that is used to defray some of the cost of renting a home. It depends on your duty station location, your wage grade, and whether or not you have dependents. BAH can be used as a down payment on a rental home if you’re looking for one close to your place of employment.
Being on active duty in the military and possessing valid orders for a permanent change of station (PCS) are requirements for BAH eligibility. In addition to proof of income and sufficient funds for the rental property’s down payment, you’ll need these items to obtain financing. In contrast, if you are already receiving BAH, you might be able to put that money toward the purchase of a single-family house, a townhouse, or a condominium. Be sure to consult a housing counselor or real estate agent before making an offer on a rental property as there are some limitations on how BAH can be used.
Go Multi-Family
A multi-family property might be a good option if you’re looking for a rental that will bring in more money. These dwellings may be duplexes, triplexes, or fourplexes. They have the potential to increase rental rates and attract more tenants. If you intend to occupy one of the units, you can use a VA loan to finance a multifamily property.
It’s crucial to do your research before investing in a multifamily rental property. Check the local market first to see if there is a need for rental properties. You must also estimate the property’s potential rental income and associated expenses. A Stockbridge property manager would be a great resource to help you find all of this information. You can move ahead with submitting an offer for the property if everything appears to be in order.
The main drawback of multi-family homes is the increased maintenance and repair costs. To avoid problematic tenants, you’ll also need to thoroughly screen applicants. A multifamily rental property, however, can be a great way to build equity and make money if you’re up for the challenge.
There are several ways for veterans and active-duty military personnel to acquire rental property financing. Growing your investment portfolio is a fantastic option for you when using special benefits like VA loans and BAH. With a little research and planning, you can become a successful landlord regardless of where you live or the type of rental property that interests you.
Working with a local rental market expert is one of the best ways for military personnel on active duty or veterans to invest in rental properties. Contact Real Property Management Anchor to learn more about the numerous services we offer investors – and potential investors – such as yourself! You can contact us online or call 770-506-1237.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
