Need Your Opinion On Townhouse Purchase?

Question

So I live in San Diego in the military age 28 and I really want to get started in investing in real estate. Homes are very expensive around here/the units are all occupied. I want to use my VA loan. I found a townhouse with 3 bedrooms and thinking I can live in one of the rooms and rent out the other 2? Is this a good idea or bad idea?

Joshua McMillion · Answer

@Shaquille Shaw

Agree with @erickson Sainval. Understand want the rents will go for, then build a team. I would reach out in a DM to David Pere. I'm pretty sure he is living in San Deigo right now and is also House Hacking for a great return. Once you figure out the number, go for it, and good luck!

Sincerely

Josh

Shaquille Shaw · Answer

@Erickson Sainval  @Joshua McMillion  @Twana Rasoul   @Simone Gabrielle  @Kenneth Donaghy

 Thank you guys for your support and for helping me out!!

Doug Spence · Answer

Definitely do a 2-4 unit house hack if you can! My buddy Brian Koons is house-hacking a 4 unit in San Diego right now on a VA loan and it's going really well for him. Shoot me a message and I'll connect you guys.

Also, you should check out the War Room Mastermind group - it's a real estate-focused mastermind for active duty and veterans. It's fantastic! Dave Pere (of From Military to Millionaire) can hook you up with more details. Best of luck and keep us all updated!

Simone G. · Answer

@Shaquille Shaw can't compete with the precise and polished response of @Twana Rasoul, but if you want to PM me the neighborhood, I can give you local insight on the demo. I also have worked with the military on placing new families and transfers, and can offer you some tips on where/how to post for roommates so as to optimize the existing vetting in place with the military, if you want to go that route on tenancy.

Twana Rasoul · Answer

@Shaquille Shaw The VA loan is an amazing product that can really kickstart your investing journey and lower your cost of living if used to it’s full potential, especially in a market like San Diego.

Depending on what neighborhoods you are considering or willing to consider, it would be a great idea to first see if you meet the VA requirements to purchase a multifamily (2-4 unit) property. The most notable requirement being that you need 6 months of reserves (i.e if PITI is $5k/month, then you’d need to have $30k in reserves).

The above path is the best way to start, if  possible...the next best path is to find a home with an ADU.  Live in the ADU and rent out the main house depending on how much you prequal for.  Beyond that, you can purchase an single family home/townhome/condo with multiple rooms and have room mates. You just need to know what the entire place would rent out for vs what your monthly PITI is.   That will help you determine if it makes sense to keep as an investment when you move out down the road, the way to build a great amount of wealth in San Diego is to be able to hold on to property for a long term 7-10+ years.

To answer if that townhome is a great idea, it depends on the location of the property to figure out what it would rent for and then how that compares to your monthly mortgage payments (PITI).

Erickson Sainval · Answer

Look at the market and see what bedroom rent would go for in that area, and if it is a trend in that area as well. Talk to an agent, or others you may know that rent a bedroom. Look on 3rd party sites to see what bedrooms are renting for, and talk to an agent.

Kevin Hunter · Answer

@Shaquille Shaw, do it.  Talk to the folks recommended and get moving.  I did exactly that back in 2004 and I still have the property today.  It does great for me and I have a bunch of equity.  Good luck!

Mark Frattini · Answer

@Shaquille Shaw

Run the numbers to see if it makes sense. Once you pencil everything out, remove the emotion, you should have a good idea if it will work out or not.

Emy Bernardo · Answer

@Shaquille Shaw  - Renting out rooms is a great way to get started in investing and home ownership.  I'm guessing you are looking at townhomes because they have an affordable pricepoint.  A multi-family in San Diego county is going to be cost prohibitive for most first time buyers (easily starting in the $700s and up for something that needs work).  You may be able to find a cheaper one in a not so desirable area.  A great way to start is to get pre-approved with a VA lender and see how much you can quality for.  Townhomes will have HOAs and you will need to make sure that they are VA approved. Here is a link to a website that you can check the VA approval status.  https://lgy.va.gov/lgyhub/cond...    If you need assistance in your home search, my husband and I specialize in first time home buyers and investors, so please fee free to message me.

Kenneth Donaghy · Answer

@Shaquille Shaw Yes, that is a good idea! It's a great way to start.

Need Your Opinion On Townhouse Purchase?

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