San Diego, CA · Member since 2017 · 31 posts · 4 votes
I posted 6 months ago, and no response. So, I am trying again. I will be buying (hopefully) a multi-family soon in SoCal. As anyone can guess, this is pricey.
Real Estate Agent · Long Beach, California (CA) · Member since 2016 · 73 posts · 43 votes
8y
My husband and I️ are House-Hacking in Long Beach. We bought a triplex last October and we were fortunate enough to use his VA loan for zero down. While we are living here and improving the property, we aren’t living for free, but our tenants are paying over 2/3 of the total payment. We plan on moving out within the next year and at that point we will buy cash flow positive roughly $500 a month. Our goal is to purchase a four-plex that we plan on living in for years as our family grows. We will use the FHA loan to keep our total money to a minimum.
Real Estate Broker · Orange, CA · Member since 2015 · 79 posts · 86 votes
8y
You can house hack anywhere. The question is what does it cost you. Some places, you can live for free off of the other unit(s). With your standard down payments (3-20% down) you’re not likely to live free in SoCal. At least in OC, LA or SD.
That said, House hacking is still a sound strategy. You get to own the property you live in with a subsidized housing payment. And you’ll likely be accumulating long term equity on a higher purchase price than you would have if you had gone SFR.
Rental Property Investor · Agoura Hills · Member since 2016 · 16 posts · 8 votes
8y
If I don't find a rental property within the next six months, I'm thinking about house hacking a small multifamily in San Bernardino County within the next year. I haven't been able to find anything that breaks even, if I had to rent out all units, in any area that I'm interested in. I've only been checking online, but I plan on reaching out to a broker soon to start actively looking for MF I might be interested in.
Rental Property Investor · Albany, OR · Member since 2015 · 312 posts · 136 votes
8y
I’m househacking a duplex in La Mesa currently. I bought it 2 years ago. I don’t live for free but my tenant pays 2/3 of my mortgage. It will cash flow approximately $400/mo when I move out. If I was single I’d be renting out 2 of the 3 rooms in my unit and living for free, but with a wife, 2 kids (too big of age difference to share a room), and pets, it’s not practical.
San Diego, CA · Member since 2017 · 31 posts · 4 votes
8y
@Eric G., yes, I am realistically going to be going out at 3.5-5%, as it would take me a considerable amount of time to raise 20%. I know that there are ways to raise capital, but this is my 1st deal like this, so I am trying to get at it solo.
@Kiyong Kim, please keep me posted on your efforts and successes. I am fortunate (maybe unfortunate) that I am currently deployed with the military, so able to save quite a bit. Still not able to make enough to save for 20% so house hacking is the way to go for me.
@Elio Guillen, let me know how that goes. I know that there are things in E LA, Moreno Valley, but that is quite far for me. I am fortunate that I have the VA Loan, but it is tied up into a home I own in AZ, so I will refi out of that AFTER my 1st Multi-family, so I can use it for the next one.
Well, if anyone out there is currently house hacking....please post on here. I am looking for a mentor/advice...anything to help me get in the game. I have the 5% down, and the desire, am working with an amazing broker, just need the advice from people actually doing it.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
8y
@Jeremy Dube From what I read here, you can remove the AZ property and convert it to an investment property then declare the CA property as your primary. Talk to a VA rep. Esp if you are deployed in CA, pretty sure it isn't hard to do, your AZ property will count as part of your income (or deficit) and the other x units will count as well.
San Diego, CA · Member since 2017 · 31 posts · 4 votes
8y
@Manolo D., from what I gather, since I am going to refi out of the VA Loan and move, the AZ home will need 20% down since it will convert to a income/non-primary type home.. Have you heard of another way ???
Real Estate Agent · Long Beach, California (CA) · Member since 2016 · 73 posts · 43 votes
8y
My husband and I️ are House-Hacking in Long Beach. We bought a triplex last October and we were fortunate enough to use his VA loan for zero down. While we are living here and improving the property, we aren’t living for free, but our tenants are paying over 2/3 of the total payment. We plan on moving out within the next year and at that point we will buy cash flow positive roughly $500 a month. Our goal is to purchase a four-plex that we plan on living in for years as our family grows. We will use the FHA loan to keep our total money to a minimum.
San Diego, CA · Member since 2017 · 31 posts · 4 votes
8y
@Lindsey Iskierka, will your triplex stay on the VA Loan, or will you refi out of it, in order to use it again? That is my eventual plan, but of course to refi out of my AZ home, I will need a few bucks. My AZ home is 240k, so I am balancing wether or not to refi out for full VA Loan, or get FHA loan (3.5%ish down) for the multi fam here....The good thing is I have options, just need to nail down my strategy.
Real Estate Agent · Long Beach, California (CA) · Member since 2016 · 73 posts · 43 votes
8y
Definitely. We had to sell my husband’s rental in CO to reinstate our eligibility for the VA loan. That rental wasn’t cash flow positive anyway so it made sense to sell it. Our triplex will stay in the VA loan for now. We looked at refinancing out of it and it simply didn’t make sense when we crunched numbers. We have a phenomenal interest rate with the VA loan and that helps with the overall cash flow when we move out and rent the unit we live in. After only a year living here and with the renovations we’ve done, we have roughly $100k in equity. It’s great to have multiple options and strategies! An FHA loan will be a great option as well! But with a VA loan there is no PMI so that helps with the overall return as well. We’re here if you have any questions or if you’d like a list of current inventory out here.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
8y
Jeremy Dube Not sure how much your equity is over there but yes 20% equity is what you need. Not very familiar with that. But VA has a very good advocate who you can ask what your options are, pretty sure things will work out easily. If not, talk to Chris Mason , he usually has a solution for everything. If you don’t refi, there should be a way to tie both az and ca properties together so it can give you more leverage.
San Diego, CA · Member since 2017 · 31 posts · 4 votes
8y
@Manolo D., my refi will need the same amount as the 3.5-5% on an FHA in SoCal. So, not sure which direction at this time to go. I prob will do FHA on 1st MFH, then refi the AZ so I can use the VA Loan for my "forever" (for now) home...about a year or so after allowed within the FHA limitation of residency. Then, ill figure out the rest. I realize that I am playing the chess match, when I should focus on the checkers for now...just get that first deal (assuring the numbers work).
Just as a deployed dude, I've got some time to think/consider options, and there seem to be quite a few.
@Lindsey Iskierka, @Jake Thompson: I will be reaching out to you both soon in regards to the VA Loan on MF and how you structured/found/financed....just tons of questions and great to see fellow veterans do it.
Rental Property Investor · Albany, OR · Member since 2015 · 312 posts · 136 votes
8y
@Jeremy Dube I’m happy to get together and answer any questions. We bought two 3 bedroom houses that were actually detached. It obviously would be better if you could rent out rooms on your side too but I get it, I’ve got a family myself so we don’t have roommates.
San Diego, CA · Member since 2017 · 31 posts · 4 votes
8y
@Jake Thompson, I assume you used the VA Loan? May I ask for a broad brush stroke numbers?
@Lindsey Iskierka, may I ask the #'s you guys got your deal with? Also, how do I get this listing you speak of, haha.
I am excited to get started. Part of my goals include perhaps buying some other MFH in AZ still, as I do go often visit, and it is clearly easier to buy there, monetarily.
San Diego, CA · Member since 2018 · 3 posts · 2 votes
8y
Hi, I did house-hack a duplex in Los Angeles, CA near downtown LA...it was in an up and coming neighborhood purchased in 2014. It was a 3/2 and 1/1 with a separate garage (I planned to turn into an accessory dwelling unit - did not matter if permitted or not at that time).
I chose to live in the larger unit and rented the 1/1 which covered 40% of the mortgage...if I did it the other way the 3/2 rent would've covered 75%. Property as purchased would've cash-flowed 200 if I managed it and did all repairs.
I managed to then cash-flow 455/m (after expenses - mgmt., vacancy, repairs, capx, and utilities) once rehabbed (I did 90% myself) and soon will cash-flow about 1400-2000/month after expenses (and after refied-cashout) when the ADU is completed. This was my 1st experience using the BRRRR strategy.
Before I rent out the ADU to a long term tenant, I am letting my manager trial out AirBnB which he says will have a higher cashflow - if this is the case, then I could use this to all my future rentals or offset the vacancy cost when a tenant moves out.
San Diego, CA · Member since 2018 · 3 posts · 2 votes
8y
A strategy I am implementing right now is converting a garage+addition/extension in our SFR in San Diego (primary residence) into a granny flat. This essentially turns your home into a simi-duplex and increase cashflow. I will post my experience soon with cost breakdown and return on investment.
My apologies for my delay, I just had a baby so I took a little time off of work. I'm back now =)
There are definitely duplexes, triplexes and quads available all around Long Beach and the surrounding areas. What price point are you hoping to find? Would you be house-hacking or renting out all of the units? Let me know what your goals would be for an investment property and I can help find a good match for you.
Feel free to email me as well if that is easier! Email address is on my page. We cannot post it here =)
Real Estate Agent · Long Beach, California (CA) · Member since 2016 · 73 posts · 43 votes
8y
@Jeremy Dube, sorry for my delay! I just had a baby so I took a little time off. I'm back now.
My husband and I bought our triplex for $750k with a VA loan (no money down) with a 3.25% interest rate.
We currently pay less per month to live there than our tenants do and when we move out, we'll be cash flowing over $500/month.
I can send you a list of current inventory as well as any off-market properties I come across. What would you be looking for in an investment property?
San Diego, CA · Member since 2017 · 31 posts · 4 votes
8y
@Lindsey Iskierka, having a baby is NO excuse. Hahaha, kidding, please don't hit me.
I have 2, so I get it.
You basically did what I want to. I am currently looking at refi on my home in AZ, in order to free up the VA loan to either buy a multifam/single fam home in CA.
Right now, my AZ home has a great rate, so kind of scared to refi it, but am crunching number today to see what/how it can work. Either way, I am buying a home (VA/FHA/Conv) in Sept Oct.
Real Estate Agent · Long Beach, California (CA) · Member since 2016 · 73 posts · 43 votes
8y
@Jeremy Dube life with the new baby is amazing. We have an even bigger "why" to continue investing now that we have a little family now. She's such a blessing to us.
I understand the dilemma with refinancing out of a great rate. In the end, we just sold my husband's condo in Colorado Springs because it just made more sense to do that rather than refi to buy our triplex out here. I wish we could have kept it, but for this situation it worked better for us. We freed up his VA eligibility and we got an even better property.
San Diego, CA · Member since 2017 · 31 posts · 4 votes
8y
@Lindsey Iskierka, I am looking in San Diego (from Oceanside/Escondido/San Marocs, all the way down to Poway). I would LOVE to buy a multi fam home, but I have moved around so much, that I need to buy a SFH, so my kids can have stability. So the idea of house hacking has to be put on the side.
What my gf and I will be doing is buying a SFH in order to establish roots. We will then start with saving for 20% for multi fams.....prob not in CA, but in AZ, where it is not too far, but so much more realistic.