Home Buying in 60644>Question Details

smoke, Home Buyer in 60655

Try to buy a house that i can also rent out to other tenants, An three flat or four. I'm a veteran GI loan

Asked by smoke, 60655 Thu Oct 23, 2008

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Web Reference: http://www.GregZaccagni.com
0 votes Thank Flag Link Thu Oct 23, 2008
If your planning to owner occupy a unit in the building, this should be a problem.

There are lots of multi unit buildings to choose from out there. You should have a large selection and be able to get a great deal. It may even be likely to be cash flow positive once you have tenants in while you live in a unit!

Best of luck! This is how I bought my first place and it worked out well.
0 votes Thank Flag Link Thu Oct 23, 2008
It is possible to purchase a 3-4 unit with a VA loan, here are just a couple of key points:

Multi-Family Housing - If the veteran is purchasing or renting out multi-family housing, the documentation required would include two years tax returns to verify prior landlord experience, copies of leases (if available), and evidence of cash reserves equaling six months PITI. All of the conditions must be met to include rental funds in income.
• The amount of rental income used on existing units would be based on seventy-five percent of the verified prior rent, unless a higher percentage can be documented.
• If the units are proposed property, then VA would require a letter from the appraiser stating the “fair rental value” and a vacancy/operating cost reduction of that rental figure (a 25% reduction would be acceptable.)

I am a mortgage broker in the Chicago area, so please feel free to send an email to me or a phone call. 847.603.8680 jerryk@profilem.com
Web Reference: http://www.profilem.com
0 votes Thank Flag Link Thu Oct 23, 2008
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