From FHA House Hack to VA Multifamily: What Would You Do Next?

Question

Hi everyone 👋

I’m Diana, 25 years old, and looking to learn more about multifamily investing.

My husband and I bought our first home in 2022 using an FHA loan while I was in college and house hacked it. That property is now a rental, and we’re hoping to use our VA loan for our next purchase.

Our goal is to house hack a duplex or small multifamily property, but with Austin prices being what they are, I’m trying to figure out the best path forward. Should we continue pursuing a multifamily property in Austin, look at other markets, or focus on building more capital first?

I currently own a rental property and run a property turn company that services apartment communities throughout the Austin area, so I’m around real estate every day. I’m looking to learn from people who have successfully made the jump from a first house hack to multifamily investing.

If you’ve been in a similar position, I’d love to hear what you would do next.

Thank you!

Aaron Gordy · Answer

@Diana Ramirez Its better to buy in Austin right now. The market is in the bottom end of the cycle and there are some really good deals out there currently. Additionally, you have a team in place already for make readies for apartment buildings and you can use that team for your own property.

The VA loan is a great product. I use mine when I have the opportunity. I first used it on a duplex on burleson road 78741 that was dilapidated at the time. Zero down. Many years later it quadupled in value and was an infinite rate of return. I sold it and it was one of the best deals that I have ever made. At the time it was cheaper for me to live in one unit and have the other side rented out than living in a nearby apartment while attending grad school at UT. It was an easy decision.

Josh Cuevas · Answer

@Diana Ramirez you definitely have to buy right, especially if you’re in a tight market. I’ve reused my VA loan multiple times and have always targeted small multifamily homes that need some work so I can build sweat equity in them.

I renovate my unit and either move into the next or do a quick turnaround when other units become vacant. Happy to hop on a call with you if you’d like.

Wale Lawal · Answer

@Diana Ramirez

That alone is enough to put you ahead of many other investors who haven’t yet managed to house hack their first home and work with multi-family units. I would continue targeting a duplex or multi-family property, but if Austin isn’t offering a good investment, there is no harm in broadening your scope to some other top Texas markets.

Good luck!

Caleb Brown · Answer

I would still try and use that VA loan there. It's no money down and a great loan product