This article is for you if you’re a veteran or a member of the military who is interested in making rental investments! Dallas rental properties can be a great way to build equity and secure your financial future. However, there are a few things you should be aware of prior to beginning. This guide will lead you through the essentials of investing in rental properties as a military veteran or while on active duty. We’ll also discuss a few tips that will facilitate the search for and acquisition of investment properties. This guide has something for everyone, whether you are a novice or a seasoned investor in rental properties!
Invest with a VA Loan
If you’re a veteran, you may be qualified for a VA loan. This kind of loan is excellent for buying rental properties because it requires no down payment and has lower interest rates. You must meet certain qualifying conditions and have sufficient monthly income to cover the mortgage payments. A VA loan might be an excellent option for financing your investment in a rental property if you meet the requirements.
With VA loans, there are a few drawbacks to take into account. In the event that you put less than 20% down on the property, for instance, you might be required to pay for private mortgage insurance (PMI). Furthermore, there are borrowing restrictions based on the county in which the property is situated. Therefore, you may not be eligible for a VA loan if you’re considering rental properties in high-priced areas.
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. Thereafter, you can rent the property to tenants. But if you leave before the year is up, the loan terms might change or you might have to pay a penalty.
Use BAH to Secure Financing
The Basic Allowance for Housing (BAH) is an added advantage for investors who are active duty military personnel. BAH is a housing allowance that helps offset the expense of renting. Your pay grade, duty station location, and whether you have dependents all factor into this decision. BAH can be used to help with the monthly mortgage payments if you’re looking for a rental property 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. You’ll also need to show proof of income and have enough money set aside for a down payment on the rental property to qualify for financing. However, if you already receive BAH, you might be able to use it to pay for a single-family house, a townhouse, or a condominium unit. Before making an offer on a rental property, be sure to consult a housing counselor or real estate agent because there are some limitations on how BAH can be used.
Consider a multifamily property if you’re searching for a rental property that will generate more income. These homes could be fourplexes, triplexes, or duplexes. They provide the possibility of increased rental rates and more tenants. If you intend to occupy one of the units, you can use a VA loan to finance a multifamily property.
Before investing in a multifamily rental property, it is important to conduct research. First, investigate the local market to determine if rental units are in demand. Additionally, you will need to calculate the property’s potential rental income and expenses. A Dallas property manager is an excellent resource for determining all of this info. If everything appears satisfactory, you can proceed with making an offer on the property.
The main drawback of multi-family homes is the increased maintenance and repair costs. You will also need to conduct a thorough tenant screening to avoid problem renters. But if you’re up for the challenge, investing in a multifamily rental home can be a great way to build equity and make money.
There are several ways for veterans and active-duty military personnel to acquire rental property financing. You have a great choice in expanding your investment portfolio by utilizing special benefits like VA loans and BAH. With a little preparation and research, you can become a successful landlord no matter where you go or the kind of rental property you’re interested in.
Working with a local rental market veteran is one of the best ways for military personnel or veterans to invest in rental properties in their area. Contact Real Property Management Legend to learn more about the numerous services we offer investors – and potential investors – such as yourself! You can contact us online or call 214-227-2404.
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.