U.S. Military Service Personnel Can Develop Passive Income Using The VA Loan


Military service personnel is among the most creative, hard-working people on the planet. They are highly trained, loyal, and know how to make a little go a long way.

These qualities can transfer into the real estate investing world when the VA loan is applied to buying rental properties, a great passive income idea. Things start by using a VA loan to buy a home. Certain rules have to be adhered to, and we’ll cover those basic rules here so that you can see exactly how this strategy works while following all of the rules.

Finding your new home

The VA loan program is very strict in its rules, so if you purchase a home using this strategy, you need to live in it and use it for a year. This works out for you because you’ve selected a home that’s pleasant to you and your family. It’s yours to use and make a home in. Pick a property that you yourself want to live in, that doesn’t require a lot of upgrades to make it appealing to future renters, and that will get you a solid rental amount when you move.

Changing Bases

When you change bases, you’re going to have to leave that home and go serve another area of your home country or another country. You know the drill. Now the passive income magic begins. You can rent this home out and earn income on it while you’re living on another base or in another country. The income is passive because you’re not really doing anything every day to earn it. You’re just renting out the home that you at first bought for yourself and lived in. You’ve also followed all of the strict guidelines of the VA loan program.

Following this strategy

Real estate investments are truly a leap of faith sometimes. That first house might seem like a daring step to take, but as you follow the pattern, you become better at it and tweak your strategies until you begin to amass a lot of income passively, just by making smart real estate buys that suit your goals. While on the next base, you can buy another house to live in using VA loan money and then follow the same pattern each time you’re moved to a new base. It’s all legal and above board, and the rules are set up to allow it. This is a huge benefit to veterans who are serving their countries and trying to get ahead at the same time.

What makes a good buy

Since you’ll be living in the home you buy, it’s going to be easier to spot a good buy. You want a real estate property that’s in a good neighborhood (low crime, schools, and shopping areas), comfortable to live in, with few maintenance issues or repair needs. If it’s a house that you’d be happy to live in, chances are other people are going to be more likely to rent out the house in the future when you move to your new base. As you travel from place to place, amassing this kind of income, it’s going to be a rewarding feeling. You’re using your intelligence to make a sometimes large income for yourself that you can earn money on even when you’re busy serving your country. It’s perfect.

Getting started

There are many rules of the VA loan program that you’re going to need to learn before making your first purchase, but the big one is that you must live in that house for a year before renting it out. Do not rent out early. This needs to be a home that you really bought for yourself to live in while serving the area you’re in, and then when you are moved to another base, you’re free to rent it out and earn money on it.

You can do this everywhere that you go, gaining rental properties that will give you passive money flooding into your bank account over the years. Some military personnel is so good at this that they amass small fortunes just from using their VA loan wisely.

Military service personnel serves their countries well, and they deserve the VA loan program to use as they fit. That said, learning the rules of the program itself will be your important first step before you even start looking at rental properties.

Know those rules inside and out, hire a lawyer if you need to, and make sure that you’re clear on everything before you buy your first home with your VA loan money. You can also hire real estate agents or other people to help you pick smart properties that will grow your income more quickly. Once you’ve learned the rules and understood everything, getting started is a lot of fun.


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