Unlocking the Power of VA Loans for Real Estate Investing

1. Buy a Multifamily Property

1.     Buy a Multifamily Property and Rent Out the Other Units One of the most popular investment tricks with VA loans is to purchase a multifamily property and live in one of the units while renting out the others. This allows you to generate rental income to offset your mortgage payments and other expenses. It's a great way to build wealth over time and potentially generate passive income for years to come.

2. Find Roommates

Similar to the multifamily property, this trick is when you buy a single-family house and live in it while renting out the other bedrooms.  Not the most ideal for families, but something to consider for those who are not married.

3. Flip Properties

Another investment trick with VA loans is to use them to flip properties. Flipping involves purchasing a property that needs repairs or renovations, fixing it up, and then selling it for a profit. VA home loans allow you to buy the property; while you live in it, you can add value to it by fixing it.  In the future, when it comes time to move, you sell the property for a profit.

4. Buy and Hold

If you're looking for a long-term investment strategy, consider buying and holding properties with VA loans. This involves purchasing a property with the intent of holding onto it for an extended period of time.  When the time comes to move, instead of selling this property, you turn it into a rental and begin collecting income.

What I did with my first VA Loan

I bought a foreclosed home that needed some work.  Because it wasn’t in perfect shape, I could buy it cheaply.  While living in the house, I completed the renovations, which increased the value of the property.  Shortly after everything was done, a co-worker needed a place to stay.  He became my first “tenant” and moved into one of the extra bedrooms.  After a couple of years, the military decided it was time for me to move, and I handed the responsibility of the house over to a property manager and turned it into a rental. 

As you can see, I blended several of the techniques together.  There is no right or wrong way to invest or leverage the loan to increase your wealth.  

Conclusion

VA loans are a powerful tool for real estate investing, and there are many investment tricks that you can use to unlock their full potential. Whether you're interested in multifamily homes, flipping properties, or buying and holding properties, VA loans can help you finance your real estate investment dreams. Consider working with a knowledgeable real estate agent or mortgage lender to help you navigate the process and maximize your investment potential.