has anyone used a VA construction loan? (PMI, home loan, real estate)

[Themanwithnoname]

I have a somewhat unique situation which has me in a quandry.

I'd like some rental income to suppliment my federal retirement.
While i live out in the stix there's an area I pass through (and know people) often going to Dr appointments. which while relatively small has a derth of rentals and is on the edge of a booming "big city" with a hot real estate market.

I've been looking at buying, but as its a landlords market it's hard to find good deals on 3 and 4 plexes (which is where my primary interest is)

It occurred to me to buy some land and have new construction made. An advantage is I won't spend $1/4 mil and then have to replace 3/4 HWH in the next month.

Also: I "know people"
My thought is to have a metal building (which can be faced with nearly anything) built (I will get a "friends discount" if not a family one), and then get most of the work done hiring people I know and/or have hired before.

A friend of mine has a business turning blueprints into materials lists, and I'm going to sit down and do some sketches and throw him a few $ to Check my estimates.

My main sticking point between using my VA Bennie and OPM (other than having to keep 1 unit as my address for 2-3 years) and sucking it up and paying cash is that there might be some issue being my own general contractor like I was for my own house.
(I'd do this over a regular morgtage as there's no PMI and for me all fees are waved.)

There are 2 reasons I want to do it again:
1. Quality/exactly what I want (mostly things like drains under thh floor, shut off valves everywhere, all wires ran together, things that only add slightly to overall cost but make upkeep much easier.)

2. I also have contacts in Habatat for humanity like places, I can give them materials lists and stockpile 4 bathtubs etc in my 1k sqft shop making a SERIOUS dent in the overhead.

I'm concerned a VA construction loan won't allow me the flexability to do these things... things that saved me tens of thousands of dollars building my own home.

Once we run the numbers I'll know...
I'm pretty sure I could afford to do this for cash in a little over a year, I'd have to sell a few things (some I'd rather not) but I will if it's the best way.
But if I can use OPM and have the monthly nut less than my pension. (I will never have debt in excess of my pension)...
It would be easier.


Sorry for the longwindedness.

[LifeIsGood01]

While a VA Home Loan cannot be used to purchase property solely for investment purposes, such as a rental home, the Department of Veterans Affairs does allow a homebuyer to use the VA Loan on a residence that has one to four units – as long as the homebuyer certifies that they intend to occupy the home.VA Loans for Rentals and Investment Property - Veteran Loan Center

[Themanwithnoname]

Yep. Addressed that in my OP.

[ericsvibe]

Originally Posted by Themanwithnoname

Yep. Addressed that in my OP.

I don't think that your problem will be the V.A., it is going to be the lender. When I looked into new construction, the credit unions and banks I spoke with were very particular in the types of construction you could use, materials, etc. Anything beyond a normal construction were out of the question. My wife and I were primarily interested in Steel Home kits, but built using a contractor. Because of how unique they were, the loan officers wouldn't approve them, afraid that they wouldn't hold value. The bank may require you to use new materials, and use traditional construction, which will drive up the price.