The VA Loan Home turned into a STR via AirBnB

3 Replies

Investment Info:

Single-family residence buy & hold investment in Bossier City.

Purchase price: $157,000
Cash invested: $8,000

I bought this house using the VA loan, required minimal follow on investment (just added a back patio and new A/C) currently AirBnBing it with an average gross of $2000/mo.

What made you interested in investing in this type of deal?

First Property

How did you find this deal and how did you negotiate it?

318 Real Estate (Shane Cheatham)

How did you finance this deal?

VA Loan

How did you add value to the deal?

Back Patio, Front Yard Landscaping

What was the outcome?

Currently listed on AirBnB and HomeAway/VRBO and produces an average of $250/mo in cashflow.

Lessons learned? Challenges?

Learned how to build up an AirBnB reputation, advantages and disadvantages of STR over LTR, challenges relate to property management of a STR are currently non-existent in the area and will transition to a LTR once I leave the area.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Shane Cheatham with 318 Real Estate, knows the Bossier/Shreveport area extremely well and is motivated to provide you with the right house for you!

@William McAdams Lenoir

Hi, sounds like you made a great deal! I have a friend who wants to use his VA loan eligibility to buy an STR property, but he's concerned that he'll get in trouble he can't convince lenders or the VA that it is legitimately his private residence. Did you find any trouble using a VA loan for this investment, or was it pretty straightforward?

@Brian Harker Hey man! I actually bought the house in order to live there as my primary residence. After I failed to garner some roommates, I looked into Airbnb as a means to cut down on some expenses. There's nothing in the VA loan stipulations that prohibits renting you home out to roommates or doing STR as long as the residence is your primary residence for one year. But don't take my word for it! I suggest that your friend research the VA loan stipulations to make sure he is not breaking any of the rules: https://benefits.va.gov/homeloans/lenders.asp

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