$1.2M property at 24 with $0 down

6 Replies

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $1,259,313
Cash invested: $1

I'm house Hacking this 4-plex. With the VA loan, I Put literally 0% down at 2.75% and lender covered all closing costs. Renting out the 2 extra rooms I have in my unit, I will be making a couple hundred dollars a month PLUS my housing allowance ($2400) from the military.

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

Learning about what real estate could do. ( especially through bigger pockets books)

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

MLS

How did you finance this deal?

VA Loan

How did you add value to the deal?

Lender covered closing costs, seller covered termite clearance

Lessons learned? Challenges?

Learn enough and talk with enough who have already done it to reinforce your decision that real estate investing is a good idea

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

Twana Rasoul

Looks like you scored the ultimate 4 plex. Well done! My fiance and I tried doing this in the Tampa Bay area with his VA loan but at the time, we were working jobs in different cities and couldn't make the commute work so it was nearly impossible to find a property that would work. How long were you property searching before you found this one?

Thank you! I definitely lucked out on this one. I totally understand not wanting to make a long commute to work. Aside from the living expense, thats one of the most costly (and time consuming) expenses. I would definitely recommend looking into the VA Renovation Loan. That may give you a little more of an option closer to home. For my deal, I was looking and running numbers on properties trying to get an understanding of the market for about a month, and then looking to make offers for a couple weeks (about 4-5 offers made). It honestly wasn't long at all.

Completely renovated 4plex in San Diego and you are not only living for free with absolutely $0 put into the property but you are actually making money each month?!?!!!!  Congrats bud and wish you much success with the property...a heck of a way to start your real estate journey!

Brian,

How did you qualify for the loan? I used the VA Loan but I only qualified for about 500k based off of what I was making as an E5 and my BAH was $3150, now I'm kind of stuck in this single family home for the next year.

Hey John and Brian! So I purchased a 4 unit property and I am living in one unit leaving 3 additional units. The lender took a conservative number of the projected rental income from the other units and applied 75% of that toward my gross income. It put me at about 58% debt to income ratio, but my lender was able to allow that. That how I was able to qualify since there is no limit on the VA loan anymore

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you