Buy up to four units with your VA benefit.

How it works

A VA loan can finance a duplex, triplex or fourplex, as long as you live in one of the units as your primary residence. You get the same VA benefits as a single family home: financing with no down payment when you have full entitlement, no monthly mortgage insurance, and flexible qualifying.

I bought my first fourplex in 2011. It changed everything for me. A veteran can make the same move with far less cash than I needed.

Using rental income to qualify

Rent from the other units can often be counted toward your income, which helps you qualify for a larger property than your salary alone would support. Lenders usually look for one of two things: experience as a landlord or property manager, or enough cash reserves to cover several months of payments. Expect a careful look at the leases or the appraiser's estimate of market rent.

One advantage over FHA: FHA loans on three and four unit properties must pass a self sufficiency test, where the rents have to cover the payment. VA doesn't use that test, which can make larger multifamily properties easier to finance.

Living there

You'll need to move in within a reasonable time after closing, usually about 60 days, and intend to live there as your home. Living on site has real advantages: you're close to the property, you learn the landlord side quickly, and your tenants' rent offsets your housing cost from day one.

Running the numbers

Look at the property like an investor, not just a homebuyer. Budget for vacancy, repairs, insurance, utilities you pay, and capital expenses like roofs and HVAC. Older multifamily properties can carry higher insurance costs in Florida, so get quotes early. The goal is a payment you can carry even if a unit sits empty for a few months.

What happens when you move out

After living there, you can move and keep the building as a full rental. With remaining entitlement, you may be able to buy your next home with VA financing too. Repeat that a few times and you've built a portfolio. If you later want to free up your entitlement, refinancing the property into a conventional or DSCR loan can restore it.

Is it right for you?

It's a fit if you're comfortable sharing walls, willing to handle tenants or hire management, and thinking long term. It's not for everyone, but for the right veteran, it's the fastest way I know to turn a housing payment into an investment.

Living in one unit, renting three

Chris, an Army veteran, bought a fourplex in Orlando with his VA benefit and full entitlement, so he put nothing down. He moved into one unit and rented the other three.

The rents covered most of his mortgage, and the lender counted part of that rental income to help him qualify. Two years later he moved into a single family home and kept the fourplex as a full rental. His housing payment had turned into an investment.