US Veteran Seeking Stats/Historical Performance on 4-Plex House Hacking

Member since 2021 · 17 posts · 2 votes

Doing some prepwork for my first house-hack. I've been drawn to the 4-Plex method where you use your VA home-loan to purchase a 4-plex then rent out 3 of the units. However, I could use some historical performance information on how this 4-plex method stacks up. This is for the greater Dallas/Fort Worth area. I'm a rookie so bear with me if I get these terms wrong. When I mean "performance information" I mean things like Rent Growth, Vacancy/Absorption, Price Per Unit, etc.

Also, is there any other financial information I should be looking for, especially considering doing this for the first time? I'm literally going to be doing this for the first time ever? Thanks for all the input in advance guys

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

@Robert Ok you can go to Zillow, enter the address of any 4-unit and see Zillow's history of the value and rents.

Future rent growth is only a guess - much like trying to predict the future price of a stock.

Vacancy/Absorption will be difficult to get just for 2-4 unit properties - the local real estate board might have it for ALL rentals.

Price/Unit you can also get off Zillow or the real estate board.

NOTE: you're really over-analyzing, which may result in analysis-paralysis. Run the numbers bases on today's info and use 3% rent growth.

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Elias HalvorsonBusiness Member
HI · Member since 2024 · 225 posts · 130 votes
1y
Hey Brother, I think it's a great idea using your VA loan to purchase the quadplex. The VA loan benefit is one of the most powerful tools those of us who have served can use to build wealth. I would ask a few agents in the area to provide some data to you. I am happy to be a resource for the VA loan side - that is my specialty. For lenders, I would recommend shopping with at least 3, and compare rates/fees.
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Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
1y
@Robert Ok thanks for the post! I wish more of us veterans would use our VA loans to buy more multi-property homes. I'm glad you are exploring this option. I began my investing career house hacking as well.

Now, the information you are looking for just isn't really available on one residential home. You might be able to find it for the city or area...but even those studies usually cost money and are more for apartment complex investors since the amount of money invested is so much higher. So, they can afford to purchase those advanced studies. I'm wondering if a property manager might have some general information to share. @Kyle Mccaw is there any specific market information you can provide around this type of information?

Now, even if there is NOT any information, that doesn't mean you shouldn't do this. It also doesn't mean you SHOULD do it either. WE still want to trust our instincts, lean on people that are experts in this arena, etc. @Joe Funari is a fellow veteran and has helped a lot of other veterans buy their first home.
Keep in mind that house hacking REDUCES my cost of home ownership. You will NOT cash flow on any property that you purchase. I'm not sure if anybody has said anything different to you but I need this to be your expectation. Remember, you are occupying one of the units...it would be impossible to cashflow in that scenario. Ok, maybe if you rented out each room and maybe did everything Short Term or something like that. But if it's long term renting, then you won't cashflow. But it will still allow you to afford a SIGNIFICANTLY higher price point than if you did not house hack.

So, if real estate appreciates 5% per year, then a $500,000 property will have $138,000 in additional value after 5 years. A $1million home will have $276,000 in value increase after 5 years (using that same 5% appreciation per year). The higher our value, the higher the equity gain is - even if the % of gain is equal between the properties...the dollar amount is higher on the higher valued home because the property is worth more. That's how house hacking helps us gain wealth. We certainly aren't gaining $276,000 with $200 of cashflow. So, don't sweat the "no cashflow" thing. Just focus on purchasing a good home that you feel comfortable with living in. Your commitment is to live in it for 12 months...and then you can do it again and again!
Hope all of that makes sense but reach out with any questions. Thanks again for the post!
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
@Robert Ok you can go to Zillow, enter the address of any 4-unit and see Zillow's history of the value and rents.
Future rent growth is only a guess - much like trying to predict the future price of a stock.
Vacancy/Absorption will be difficult to get just for 2-4 unit properties - the local real estate board might have it for ALL rentals.
Price/Unit you can also get off Zillow or the real estate board.
NOTE: you're really over-analyzing, which may result in analysis-paralysis. Run the numbers bases on today's info and use 3% rent growth.
[email protected]248-209-6824
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Joe FunariBusiness Member
Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
1y
@Robert Ok I am a fellow veteran & investor working here in the Dallas/Ft. Worth area. I have helped many fellow veterans over the years use the VA Guarantee (some call it a VA Loan) to purchase a multifamily property. With the VA Guarantee its zero down payment. But you must occupy one of the units for a minimum 1 year. So the biggest challenge my clients in your situation have is that one of the units is vacant or will be vacant in roughly 45 days. But definitely doable. But first I recommend you get your Certificate of Eligibility (COE) from the VA and get a pre-approval from a VA approved lender. I would strongly recommend you work with @Andrew Postell. He is a fellow veteran & investor as well. He has helped me & and many of my fellow veteran clients get our COE from the VA and a pre-approval for purchasing a multifamily property. So start there.
Regarding the data for Rent Growth, Vacancy/Absorption, Price Per Unit, etc. I run the sold and rent comps for a specific property your interested in. Plus, pull other data that is relevant to this specific property. A lot of this data you seeking isn't public data becuase Texas is a Non-Disclosure state with regards to real estate transactions. So best way to pull this data is working with a licensed realtor.
Plus, I have been an investor for many years. So I will be your "Boots on the Ground" to give yo that insight to make sure your making the right investment. Plus, my decades of experience as an investor, as well as, my contacts that have helped me become financially free will be your contacts. Andrew Postell is one of them (Thanks for the shout out Andrew!). Hope this helps. But I wish I would have started my REI journey this route. But my bride of +23 years doesn't want to live in a multifamily. Maybe someday when we are empty nesters, LOL. Hope this helps.
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Kyle MccawBusiness Member
Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
11mo
@Robert Ok House hacking a 4-plex with a VA loan is a smart way to get started. In DFW, performance data on small multis isn't as standardized as apartments because Texas is a non-disclosure state. Most of what you'll rely on will be rent comps, vacancy trends, and operating costs on the specific property you're looking at. What I'd focus on: verify true rents (don't just take listing claims), stress-test vacancy at 10%, and budget real maintenance/CapEx since older 4-plexes here often need roofs, plumbing, or HVAC sooner than you think. Your return won't be heavy on cashflow while you live in one unit, but it's a proven wealth builder.

@Andrew Postell's right — you won’t find packaged historical reports on 4-plexes like you would for large apartments. From my side managing rentals across DFW, I can tell you rents in most submarkets have averaged 3–4% annual growth long term, with turnover and maintenance being the bigger variables. A realistic underwriting model beats chasing perfect data.

@Joe Funari's spot on about needing a vacant unit at closing — I've seen deals stall because that was overlooked. And yes, the VA loan zero-down structure is a gift if you plan ahead for that vacancy risk.
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