This article is for you if you are a veteran or active duty military member interested in rental investments! North Charleston rental properties can be a terrific way to safeguard your financial future and increase equity. Before beginning, there are a few things you should be aware of. This manual will walk you through the fundamentals of buying rental properties as a service member or veteran. 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’re just getting started or are already familiar with rental properties!
Invest with a VA Loan
Those who have served as a veteran might be qualified for a VA loan. With no down payment and lower interest rates, this loan type is a great option for buying rental properties. You must be eligible for a mortgage and have sufficient income to cover the monthly payments. If you qualify, a VA loan can be a fantastic way to finance the purchase of a rental property.
VA loans have a few downsides you should be aware of. For starters, if your down payment is less than 20%, you may be required to pay 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 looking at rental properties in high-priced areas.
You also need to be aware of the occupancy requirements. After purchase, you or a qualified tenant must occupy the home as your main residence for at least one year. You can then lease it to tenants after that. But if you move out before the year is up, you might have to pay a penalty or have the loan terms changed.
Use BAH to Secure Financing
The Basic Allowance for Housing (BAH) is a superb benefit for investors who are in active duty military. BAH is a housing benefit that lessens the burden of paying rent. It depends on your pay grade, where you are assigned to work, and whether you have dependents. BAH can be used to help with monthly mortgage payments if you’re looking for a rental property close to your place of duty.
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. 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. But if you are already receiving BAH, you might be able to put it toward buying a single-family house, a townhouse, or a condo. There are some limitations on how BAH can be used, just be sure to consult a housing counselor or real estate professional before actually making an offer on a rental property.
Consider a multifamily property if you’re searching for a rental property that will generate more income. Duplexes, triplexes, or fourplexes are examples of these properties. They have the potential to attract more tenants and charge higher rent. Veterans who intend to live in one of the units themselves may use VA loans to finance a multi-family building.
It’s important to research a rental property with multiple families before making an investment. First, investigate the local market to determine if rental units are in demand. You should also figure out the property’s potential rental income and associated costs. A North Charleston property manager is an excellent resource for determining all of this info. You can start with submitting an offer for the property if all is in order.
The main weakness of multi-family homes is the rising maintenance and repair costs. To avoid problem tenants, you will also need to conduct a thorough tenant screening. Although, if you are willing to face the challenge, a multifamily rental property can be an ideal way to accumulate equity and create revenue.
Veterans and members of the military on active duty have several options for financing rental properties. Employing great features such as VA loans and BAH, building a portfolio of investments is a strong choice for you. 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.
Operating with a local rental market expert is one of the best methods for veterans and veteran members to invest in rental properties. Contact Real Property Management Charleston to find out more about the wide range of services we provide to investors and potential investors like you! You can contact us online or call 843-900-4061.
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.