No Time Like the Present

[Peter Staiano]

Hey everyone, 

This is my first post, but have been listening to BP podcast and analyzing deals for a few weeks now. I decided that my 2022 resolution is to buy my first house (currently renting) and rent out the other bedrooms. I live in Jacksonville, FL and from a cash flow perspective it seems like many of the deals I'm analyzing are either breaking even or maybe a little positive cash flow per month. My guess is that it's because I'm using a VA loan with 0% down. Should I be pursuing a property like this as a first home just to get started, banking on the equity building with time and essentially living for free, or should I be looking into properties with better cash flow overall? The market in Jax is hot and need to be ready to pull the trigger when the opportunity arises. Appreciate the input!

[Andrew Freed]

@Peter Staiano - Absolutely attempt to purchase with your VA loan. Living for free is a fantastic tactic to start saving some serious dollars. Living expenses accounts for more than 1/3 of all household expenses hence you will see your savings rate go through the roof.

In regards to properties, definitely seek a multi-family each time. The more units you can accumulate per transaction, the easier the journey will be. 

In addition, since you have VA loan capabilities, you now have the ability to househack with a VA and FHA simultaneously. Essentially you can purchase with a VA then your next property with a FHA then refinance out of VA into conventional and reuse the VA, do the same for the FHA and continue until you have a sizable portfolio. A few people in my network are utilizing this strategy right now including @Wendell Butler. He might have additional insight. 

Best of luck on getting started, it's an exciting time!