First-Time House Hacking in San Diego Using a VA Loan

Jack Meier · 2026-11-11T07:34:48-08:00

Hello BP community! I'm thinking about getting started in real estate investing through house hacking, and my wife is fully on board with the idea. We're looking at San Diego and would ideally like to purchase a triplex or fourplex using a VA loan, live in one unit, and rent out the others.We both have VA disability ratings, so we'd be exempt from the VA funding fee. One thing I'm trying to figure out is whether I should take advantage of the 0% down VA loan or put some money down to improve monthly cash flow. I understand the benefit of preserving cash, but I'm wondering if the lower monthly payment would be worth putting money down.I'm also debating whether it makes more sense to buy an existing fourplex or purchase a triplex with the potential to add an ADU down the road.For those who have experience with house hacking, especially in high cost markets like San Diego, what would you recommend? Would love to hear what you would do differently if you were starting out today.

Caleb Brown

Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes

6h

I'd use VA. Great loan product. The goal with house hacking is to reduce your monthly housing expense as you live there so you can save all while using low money down. Once you move out then you'd cashflow.

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Ametria Chaney

Realtor · Memphis, Shelby County · Member since 2026 · 362 posts · 128 votes

6h

Welcome, Jack — congratulations on starting with a plan you and your wife both believe in, because that matters more than people admit. With the funding fee exemption, the VA loan is an especially strong tool here, and you're weighing the right tension: preserving cash versus lowering the monthly payment. In a high-cost market like San Diego, I'd lean toward keeping cash in reserve for the surprises a first property always brings — a vacancy, a repair, a longer lease-up — rather than buying down the payment on day one, as long as the deal still works with a smaller down payment. On the property, an existing fourplex usually gives you income from day one, while a triplex-plus-ADU is a great plan only if you're comfortable with the permitting and build timeline. A local agent who knows San Diego small multifamily can walk a few real listings with you and show how those choices change the numbers. Best of luck with the first one!

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Harrison C.

Member since 2017 · 90 posts · 45 votes

5h

Jack, on the 0% vs money down question, it helps to put a number on it. At a 6.25% rate (just for the math), every $100,000 you put down lowers the payment by about $615 a month, roughly $7,400 a year. That is a sure return equal to your rate, but the cash is locked in the walls and you only get it back by selling or refinancing.

The first year of a 3 or 4 unit is when you need cash the most: a unit that sits empty for two months, a water heater, a tenant who stops paying while you go through the process. So the order I would use is cash first: six months of the full payment plus a repair fund in the bank (many lenders want to see reserves like that on a 3 to 4 unit before they count the other units' rent toward qualifying anyway), and only put down what is left over. If a deal only works with a big down payment, it is usually the price that is wrong, not the down payment.

On the fourplex vs triplex plus ADU: price the ADU in today's dollars with a real San Diego bid and permit timeline before you give it any credit. The fourplex earns from the day you close; the ADU is a second project with its own loan.

One more comparison worth running in a market that expensive: count bedrooms, not doors. A house or duplex with five or six bedrooms where the extra rooms are rented one by one can sometimes bring in as much as two small units for less purchase price. It is more hands-on (shared kitchen, utilities in your name, one lease per room), so put both on the same spreadsheet before you pick.

Thank you both for your service.

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Ty Burns

Lender · Salt Lake City, UT · Member since 2013 · 153 posts · 23 votes

4h

Since you are VA-eligible and plan to live in one unit, a VA loan can be a strong way to keep cash available, but ask the lender early how they will qualify a 3 to 4 unit property and what rent documentation or reserves they require. I would compare the payment with 0% down against a few down-payment scenarios while keeping a real reserve for vacancy, repairs, and initial turnover; the lower payment is only useful if you still have enough liquidity. An existing fourplex gives you rental income sooner, while a triplex plus ADU needs its own permit, cost, and timeline analysis before counting that future rent. In San Diego, verify legal unit status and local rules before making an offer. If you want, feel free to message me and I can take a look at the numbers.

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Joe Piccirello

Lender · Peoria, AZ · Member since 2026 · 51 posts · 13 votes

2h

Jack, thank you both for your service. Being exempt from the funding fee takes away one of the bigger reasons people put money down on a VA loan, so I'd have your lender run the actual payment at 0% down and at a couple of down payment amounts side by side, then decide based on how much cash you'd still have after closing. On a three or four unit, cash in the bank usually does more for you in year one than a slightly lower payment. On fourplex vs triplex plus ADU, I'd judge the triplex on the three units that exist today and treat the ADU as upside, since the build cost and timeline are hard to pin down until you have plans and permits. Also ask early how the rent from the other units will be counted when you qualify, because that can change which price range makes sense.

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Ryan BakerBusiness Member

Lender · Strongsville / Cleveland, OH · Member since 2026 · 158 posts · 39 votes

2h

Jack, congrats on getting started. On 0% down vs putting money down, run it both ways. On a triplex or fourplex the rents from the other units usually carry a big part of the payment, so a little extra down can turn it from break-even to cash flowing. Just don't drain your reserves to do it, because you'll want cash on hand for repairs and vacancies in year one.

The existing fourplex usually wins on day-one income. The triplex with an ADU is more of a bet on getting it permitted and built. Happy to walk through the numbers on both with you, give me a call (my number's in my signature below).

– Ryan

[email protected]330-548-3340

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First-Time House Hacking in San Diego Using a VA Loan

First-Time House Hacking in San Diego Using a VA Loan

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