Even if the numbers aren’t perfect, and you have to pay part of the mortgage on your 4-plex out of your own pocket, our recommendation is to seriously consider it. This piece of property can be part of a growing investment portfolio. And as rents typically go up over time, the rental income on just the three units could eventually cover your entire mortgage payment at some point in time. And if you ever decide to live somewhere else, the cash flow could be very attractive! And if the property appreciates…well that’s a home run!!! That’s investing!
From the example above, it would be an intelligent decision to pay as much as $1000/month out of your own pocket to cover your mortgage, your taxes, and your insurance. That would equal the rent you would pay anyway. Your tenants are covering the remaining expenses, and you still get the tax benefits and potential appreciation benefits! This is your money and your VA benefit working for you, and you’ve probably got the best unit in the property, perhaps even rent free.