If you are a veteran or active-duty service member interested in rental property investments, this article is for you! Dartmouth rental properties can be a great way to build equity and secure your financial future. Before you start, you should be aware of a few things. This guide will walk you through the fundamentals of investing in rental properties as an active-duty service member or veteran. We’ll also go over some pointers to make finding and purchasing investment properties simpler. This guide has something for everyone, regardless of your experience level with rental homes!
Invest with a VA Loan
If you are a veteran, you might be qualified for 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. You must fulfill certain eligibility criteria and earn enough money to cover your mortgage payments each month. A VA loan could be a great way to finance your investment in a rental property if you are eligible.
There are a few drawbacks to VA loans that should be taken into account. For example, you may be required to pay private mortgage insurance (PMI) if your down payment is less than 20%. Additionally, the county in which the property is located determines the maximum loan amount. Therefore, you might not be able to use a VA loan if you’re looking at rental properties in expensive areas.
You should be aware of the occupancy requirements as well. A minimum of one year after purchase, you or a qualified tenant must live there as your primary residence. The property can then be rented 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 yet another fantastic perk for investors who are in active duty military. A housing allowance known as BAH is used to defray some of the expenses of renting a home. Your pay grade, duty station location, and whether you have dependents all factor into this decision. BAH can be used to help cover monthly mortgage payments if you’re searching for a rental property near your duty station.
To be exempted from BAH, you must be a member of the armed forces and have instructions for a permanent change of station (PCS). Additionally, you will need proof of income and sufficient funds for a down payment on the rental property in order to qualify for financing. If you’re already receiving BAH, however, you may be able to use it to purchase a townhouse, single-family unit, or condominium. Before submitting an offer on a rental property, you should consult with a housing counselor or real estate agent about the BAH restrictions.
Go Multi-Family
Consider a multi-family property if you’re looking for a rental home that will bring in more money. They can be fourplexes, triplexes, or duplexes. They provide the possibility of increased rental rates and more tenants. If you intend to live in one of the units yourself, veterans may be able to use VA loans to finance a multi-family building.
Before investing in a multifamily rental property, it is essential to conduct sufficient research. To determine whether there is a demand for rental properties, first, analyze the local market. The potential rental income and associated costs for the property must also be calculated. A Dartmouth property manager would be a tremendous resource to help you locate all of this information. You can proceed with submitting an offer for the property if all is well.
The primary downside of multi-family homes is that they need more upkeep and repairs. In order to prevent troublesome tenants, you must carefully screen potential tenants. However, if you’re up for the challenge, investing in a multi-family rental property can be an excellent way to increase equity and make money.
Veterans and active military personnel can finance rental properties in a variety of ways. You should consider expanding your investment portfolio using special benefits like VA loans and BAH. With a little preparation and research, you can become a prosperous landlord wherever you go and with any type of rental property you choose.
Collaborating with a local rental market expert is one of the most effective ways for veterans and veteran members to invest in rental properties. To find out more about the numerous services we provide to investors and potential investors like you, get in touch with Real Property Management Success! You can contact us online or call 774-840-5140.
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.
