First duplex; loan just funded today!

[Joshua J Cawthorn]

Hey guys! Super happy to report: the loan on my first duplex just funded and I'm expecting to pick up the keys tomorrow evening. Paid $700,000 for a duplex: 3 bed/1 bath upstairs and 1 bed/1 bath downstairs in the North Park (92104) neighborhood of San Diego, CA. Funded using the VA loan and put about $14k down.

Bought it at the very bottom of the asking price because this baby definitely needs some work: the plumbing is questionable and there is some cosmetic stuff that needs to be rehabbed (kitchens and bathrooms and exterior of house especially). I can't WAIT to pour some money and love into this place, raise the rent and move renters in, get it appraised and do a cash-out refi.

This is my second property, my first being a single family home in the same zip code. It is currently rented out and cash flows at a generous, whopping $171/month. The current tenant that occupies that house is amazing, takes great care of the property, always pays on time, helps me with the repairs by coordinating with repairmen and/or just otherwise being available to help. He also lets me know when things need repair, which is so helpful!

My intention is to owner occupy this duplex for 12-months (as is a stipulation of using the VA loan) and use those 12 months to complete rehabs. I'll be funding those out of pocket, while paying a portion of the mortgage. In 12 months, ideally, I'll have the place reappraised and higher rents in place. At which point, I refinance out of the VA loan (into a conventional) and do it all over again!

Very excited about being able to do this and to share it with you guys!