Real estate in that area has gone through many boom-bust cycles, and it’s likely to crash again. I understand that some of the subdivisions in that area were planned and laid out in the late ’80s, but were shelved for a decade or more during the last real estate bust.
In the pre-bubble days the rule of thumb was: buy if you’re staying for five years or more, otherwise rent. I’d go by that rule in today’s uncertain market. Plus you’re in a unique situation … if you find yourself seriously upside down in a few years and unable to sell, a vindictive lender could go after you for failure to pay just debts under the UCMJ.
For $2200 or less you should be able to find a very nice rental home. Just make sure you’re not renting from an upside-down investor who is likely to go into foreclosure at the worst possible time, say when you’re TDY to South Succotash.
I say put away cash reserves now and build a bulletproof credit rating. Someday, when the right buying opportunity comes, that VA loan puts you in a great position as you’ll be one of the few buyers eligible for 100% LTV financing.
