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

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

Jack Meier
Member since 2023 · 10 posts · 2 votes

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.

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
2d

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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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
    2d

    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.

    2Reply
    • Jack Meier
      OP
      Member since 2023 · 10 posts · 2 votes
      11h

      That's how I'm looking at it too. I'm comfortable with some negative cash flow initially if it significantly reduces my housing costs compared to renting or buying a SFH. Appreciate the perspective!

      1Reply
  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 395 posts · 135 votes
    2d

    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!

    1Reply
    • Jack Meier
      OP
      Member since 2023 · 10 posts · 2 votes
      11h

      Really appreciate the advice! I agree that keeping reserves is important, especially with a first multifamily property. I’m leaning toward an existing fourplex for the income from day one and fewer moving parts.

      0Reply
  • Harrison C.
    Member since 2017 · 107 posts · 57 votes
    2d

    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.

    1Reply
    • Jack Meier
      OP
      Member since 2023 · 10 posts · 2 votes
      11h

      This is really helpful, especially the point about not forcing a deal to work with a large down payment. I hadn’t thought much about renting by the bedroom either. I’ll add that to my comparisons. Appreciate you taking the time to break this down, and thank you for the support!

      0Reply
  • Ty Burns
    Lender · Salt Lake City, UT · Member since 2013 · 154 posts · 24 votes
    2d

    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.

    1Reply
    • Jack Meier
      OP
      Member since 2023 · 10 posts · 2 votes
      11h

      Thanks, I appreciate it! I’ll definitely compare the different down payment scenarios while keeping reserves in mind. I’ll also be careful about verifying legal unit status.

      0Reply
  • Joe Piccirello
    Lender · Peoria, AZ · Member since 2026 · 53 posts · 14 votes
    2d

    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.

    1Reply
  • Ryan BakerBusiness Member
    Lender · Strongsville / Cleveland, OH · Member since 2026 · 168 posts · 45 votes
    2d

    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]330-548-4430
    1Reply
  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 280 posts · 101 votes
    2d

    For a VA house hack, I'd compare both options based on the total monthly payment, projected rental income, and how much cash you'd have left for repairs and vacancies. Putting money down can improve cash flow, but preserving reserves can be just as valuable with a 3–4 unit property. Also, VA financing has additional qualification requirements for properties with more than one unit, so I'd verify those early. Are you leaning toward an existing fourplex or a triplex with ADU potential?

    1Reply
    • Jack Meier
      OP
      Member since 2023 · 10 posts · 2 votes
      1d

      Leaning toward a traditional fourplex. I like knowing exactly what I'm getting into with four established units. A triplex with an ADU is still on the table, but I'd prefer to keep things simple for my first deal.

      0Reply
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 702 posts · 239 votes
    2d

    Hey Jack!

    Joe and Harrison covered the 0% vs money down math really well. One thing I'd add for San Diego specifically: with full entitlement there's no VA loan limit, so you can still go 0% down at fourplex prices out there, which a lot of people don't realize. Since you're already exempt from the funding fee, keeping that cash as reserves usually does more for you in year one than a slightly lower payment, and it's there for the next one too. Started with a househack myself, it's one of the best ways to get going. Feel free to reach out, happy to go through those options with you if you'd like!

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group548 Reviews
    WebsiteView Page
    1Reply
    • Jack Meier
      OP
      Member since 2023 · 10 posts · 2 votes
      11h

      Thanks for sharing your experience! That’s reassuring to hear from someone who started with a house hack. I’m leaning toward keeping as much cash available as possible, especially for the first year.

      0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    1d

    Thank you for your service. The Va loan is a great benefit that you have earned.

    San Diego is my market. I know it fairly well.

    I have made a lot of money on San Diego area RE, but this is a more challenging RE market than recent times. One more obscure challenges is vacancy has gone from crazy low below 2% a few years ago to a slightly low just above 5%. Especially this time of year I can notice the increase vacancy when filling a vacancy.

    The math is clear that better ROI in San Diego has historically been achieved at maximum LTV. Lower LTV is buying the cash flow at too high a price. In addition, as others have indicated, having reserves is beneficial and safe.

    Now for the reality of San Diego RE. At high LTV VA loan, mls purchases without a value add will be initially cash flow negative if accurately including vacancy and sustained expenses. The cash flow has historically improved fast and appreciation has historically provided crazy returns. My lowest local property has appreciated $2700/month. Virtually every local purchase by anyone has produced better appreciation than this. I have 3 properties that have appreciated over $10k/month over their hold (not many have done much better than these).

    City of San Diego outside Mission Beach has not hit its STR quota which implies this is an option and may warrant consideration.

    I am unsure what your current w2 income is and whether either you or your wife is a homemaker. If so, you may want to look into how to deduct passive losses and the advantages of accelerated depreciation/cost seg.

    If you have market specific inquiries, you can DM me. I have historical rent growth and appreciation numbers for this market.

    Good luck

    1Reply
  • Marc MoraPro Member
    Investor · Fort Lauderdale, FL · Member since 2026 · 277 posts · 45 votes
    1d

    @Jack Meier, I'd go with your instinct on the fourplex and keep the cash. With the funding fee waived, 0% down leaves your savings free for reserves, and if it's an older building, the first big repair tends to come early. I've house hacked myself and am open to giving a second opinion on the numbers. Will your wife help run the units? What strategy do you see for the fourplex once you move out? You can also buy real estate without a loan or money down.

    1Reply
    • Jack Meier
      OP
      Member since 2023 · 10 posts · 2 votes
      10h

      Thanks! My wife will definitely be involved. The plan is to live in one unit for at least a year, then potentially move out and rent that unit as well. Ideally, we’d hold the property long term for appreciation and rental income.

      0Reply
  • Brian Baker
    Real Estate Agent · TRINITY FLORIDA · Member since 2024 · 8 posts · 2 votes
    13h

    With the funding fee waived for both of you, that 0%-down VA loan is even stronger than usual, so I'd keep the cash — six months of the full payment plus a repair fund beats buying down the payment on day one, because the first year of a 3–4 unit is when a vacancy or a water heater hits. The math I run for veterans is simple: every $100k down only saves about $615 a month at today's rates, and you can't get that cash back when you need it. I'm a veteran agent in Tampa Bay, not San Diego, so I won't pretend to know your blocks — but on the VA side, live in one unit, rent the rest, and underwrite it as a rental from day one.

    1Reply
  • Jack Meier
    OP
    Member since 2023 · 10 posts · 2 votes
    10h

    .

    0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    9h

    VA loans are awesome. I had a client start with that on a 3 flat and scale into 4 buildings over time. One challenge is the properties need to be decent shape but have your realtor write how the VA lender handles many investment properties and how your realtor uses this lender all the time, I CC the lender on my offer when I submit it. ¨Buyer love notes¨ really work when doing VA offers if legal in your state and complies with their fair housing laws.

    0Reply
  • Jay Johnson
    Lender · Tulsa, OK · Member since 2026 · 6 posts · 0 votes
    9h

    This is the right question — and for a VA house hack, the answer usually starts with reserves, not the down payment.

    The rule that decides a lot of this: if you're using the other units' rental income to qualify on a 3–4 unit VA purchase, VA wants to see six months of reserves — six months of the full PITI payment — still in the bank after closing, and the rent counts at 75% of lease or market. Every dollar you put down is a dollar that isn't sitting in reserves or in the "first year of owning a multifamily" fund. That fund gets used. Count on it.

    The payment tradeoff itself is simpler than it feels: at today's rates, every $10k of down payment lowers the monthly principal and interest by roughly $65–67. So $50k down buys you about $330 a month of payment reduction. Real money — but compare it against what that same $50k does as reserves, repair cushion, and the next property's war chest. And since you're both funding-fee exempt, there's no PMI-style penalty for putting less down on a VA loan — which is exactly the situation where low-down shines.

    Where money down starts to win: if the property only cash-flows with a chunk down, or if the debt ratios don't work without it. Otherwise, the order most experienced VA house hackers use is: cash first, decide second.

    0Reply
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