Siblings House Hacking Cash Cow Duplex with VA loan - Los Angeles

[Juan Ayala]

BP Fam,

Would really love to hear people's opinions, good or bad on the following. Thinking on purchasing a 2-4 unit property with my brother. He would occupy the property and we would rent the other 1-3 units. My brother would qualify for the VA loan. What are your thoughts on taking title? We would like for the both of us to be on the title. We would split the profits up. I would pay for closing, any minor rehab, mortgage till we fill the property up with tenants. He would live in one unit for 6-12 months. We would ensure the lender is aware and its legal. Thoughts BP fam? In advance, i would like to thank you for taking the time to read my discussion and your comments. This would take place in Los Angeles market and cap rates >8%. We are not looking to profit from equity just looking for the cash flow.

[Upen Patel]

@Juan Ayala What you are suggesting can't be done. VA only allows title with a non-borrowing spouse. So, yes you can "buy" the property with you brother using his VA benefit, but the mortgage and title will be in his name alone.

Checking with a REI attorney and a CPA about you having an external agreement with your brother. That the only option I can think off.