Hey everyone quick question. I’m in South Carolina and have not used my VA loan yet. I’m starting to look at using it to purchase an off-market quadplex. I’m married, so my wife and I would plan to owner-occupy one of the units.
Has anyone here gone through a similar VA multifamily purchase? Any lessons learned, lender recommendations, or things to watch out for with VA appraisals on quads would be appreciated.
VA Loan MultiFamily Investing
byu/Gunner_31- inrealestateinvesting
Posted by Gunner_31-
2 Comments
Bro use navy federal. There is no better bank when it comes to rates. If I wasn’t banned for life that’s who I would use
Solid move! The VA loan is a cheat code (0% down is unmatched).
Since you are targeting a Quad (4-unit), there is one specific trap to watch out for: The “VA Self-Sufficiency Test”.
Unlike duplexes, for 3-4 units, the VA requires that 75% of the appraised rents cover the *entire* mortgage payment (PITI). With interest rates sitting around 6-7%, this is extremely hard to pass right now unless you are buying at a deep discount.
Make sure your lender runs this specific math *before* you spend money on inspections or appraisals. Good luck!