If you are a veteran or active-duty service member interested in rental property investments, this article is for you! Building equity and securing your financial future can both be accomplished with Anacostia rental properties. Nevertheless, there are a few things you must know before beginning. This manual will walk you through the fundamentals of buying rental properties as a service member or veteran. A few pointers to make finding and purchasing investment properties simpler will also be covered. This guide has something for everyone, regardless of your experience level with rental homes!
Invest with a VA Loan
If you are an eligible veteran, you might be able to get a VA loan. There is no down payment required and the interest rates are lower for this kind of loan, which can be used to buy a rental property. 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.
There are also some VA loan disadvantages to consider. If you put less than 20% down on the house, for instance, you might have to pay for private mortgage insurance (PMI). Moreover, the amount you can borrow is subject to restrictions determined by the county in which the property is situated. As a result, you might not be able to use a VA loan if you’re considering renting out a property in an expensive area.
Additionally, you must be aware of the occupancy requirements. You or a credentialed tenant must possess the property as your main home for a minimum of one year following the purchase. After that, you can find tenants to live there. 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
The Basic Allowance for Housing (BAH) is yet another fantastic perk for investors who are in active duty military. BAH is a housing benefit that lessens the burden of paying rent. It depends on your duty station location, your wage grade, and whether or not you have dependents. If you are searching for a rental property close to your duty station, you can use BAH to help cover the monthly mortgage payments.
You must be on active duty in the military with valid orders for a permanent change of station (PCS) in order to be eligible for BAH. In addition to proof of income and sufficient funds for the rental property’s down payment, you’ll need these items to obtain financing. However, if you are currently getting BAH, you may be able to use it to buy a single-family home, condo unit, or townhouse. 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. They can be fourplexes, triplexes, or duplexes. As a result, there may be more tenants and higher rental rates. Veterans can use VA loans to finance multifamily properties if they intend to occupy one of the units.
It’s important to research a rental property with multiple families before making an investment. To find out if there is a demand for rental units, first, analyze the local market. The potential rental income and associated costs for the property must also be calculated. An Anacostia 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 primary downside of multi-family homes is that they need more upkeep and repairs. 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.
Veterans and service members can finance rental properties in a variety of ways. Growing your investment portfolio is a fantastic option for you when using special benefits like VA loans and BAH. You can become a successful rental property owner wherever you go by doing some planning and research on the type of rental property you’re interested in.
Working with a local rental market expert is one of the best ways to invest in rental properties as a veteran or active military member. Contact Real Property Management Washington DC to learn more about the multiple services we provide investors and prospective investors like you! You can contact us online or call 202-813-9993.
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.
