Building Wealth with VA Home Ownership

 A service member I chatted with recently said that she has bought three properties with VA loans. When first hearing about these loans, they sounded so special that I was shocked to learn that they can be used multiple times.

Own a new property every two years!

National Guard members who have served for six years or were on active duty for 90 days also qualify for VA loans. A young person who joined in their 20s could become a homeowner more easily before age 30.

After buying my first home (with a conventional loan) in 2021, I plan to buy a second home in 2024 or 2025 after qualifying for a VA loan. Then we'll live in the new home and rent out the first (small) home that we purchased. By that point, the rents in the hot rental market where will live will likely reach the point where the renter is paying our entire mortgage.

And if we want to, we could rinse and repeat the same process to buy a third home.

After owning three properties for 10-15 years, we could cash out of the first two homes. Then live off of the profits of those sales until retirement when our 401Ks and Roth IRAs would accessible.

Use Zillow or a Property Management Agency to Find Reliable Tenants

A buddy (non-service member) who just bought his second home in Bozeman, MT was able to use Zillow's Rental Application Form to find qualified renters in less than a month, on multiple occasions.

He rented out his first home, showed the bank the lease, and was able to co-sign with his in-laws to get a single family dream home in the same city! He was expecting a third child and they were outgrowing their original home, a modest 3 bedroom townhome in a newer and desirable neighborhood. He now rents this Townhome for $2,700 per month, which is far more than the total cost mortgage they got in 2014 (7 years ago). Their mortgage, including HOA fees on that rental is only $1,400-1,500 per month. 

Not only is his tenant paying their mortgage completely, they are also paying for part of their current mortgage on this nicer home so his family has more affordable living. 

This service Zillow offers is free for the homeowner and only costs the renter applying a flat $29, which they can also use to apply to other Zillow rentals within 30 days. This is a big win-win for both landlord and tenant. The landlord has better piece of mind getting the history of the tenant for free, and the applicant does not have to pay high fees to apply to multiple properties. 

Some property management agencies swindle big bucks out of applicants in hot rental markets by charging $50, $75, or more to apply, when their costs for the application are almost nothing.

VA Loan Occupancy Requirement Before Renting

Buyers must live in the home for 12 months before renting out the property.

Moving into the VA Loan Home

Generally buyers have 60 days to occupy the property, but up to one year if there is a special circumstance, like a service member who is returning from deployment, or time is needed to perform agreed upon repairs to the property.

"The VA allows for a spouse to fulfill the occupancy requirement for an active duty military member who is deployed or who cannot otherwise live at the property within a reasonable time."